The performance of plasma thrusters with applied electric and magnetic fields can be enhanced by increasing the magnetic field strength, which is applied in the thrust chamber and the exit region propulsive plume. The ejected plasma which passes through a slowly diverging magnetic field will expand but can be restricted within the magnetic nozzle fields. To examine in detail the processes that occur, a new method with Particle-in-cell calculations is applied here. A two-dimensional axisymmetric particle dynamic code is used to model an AF-MPDT (Applied-field Magnetoplasmadynamic Thruster) for which extensive experimental data are available; it used Ar propellant and had applied magnetic coils of 101.5 mm radius and 153 mm length. From the results of the simulation study, it is found that total thrust increases linearly with magnetic field strength in the range of 0-0.1 T, but it decreases with increasing applied magnetic field up to 0.6 T. Thrust efficiency is found to increase to a maximum of 8.4% when B ¼ 0.1 T; further, the peak value of nozzle efficiency reaches 91% at a moderate magnetic field (0.3 T). In detail, it is found that distributions of plasma density (10 14 -10 15 m À3 ) that form in the magnetic nozzle demonstrate a significant pattern of concentration up to fields of B ¼ 0.3 T where ions begin to be magnetized. However, azimuthal velocities of ions behave differently with different degrees of magnetization, i.e., weakly magnetized ions follow rotating electrons in a right-handed direction, while fully magnetized ions revolve in left-handed direction due to electromagnetic forces. Notably, a feedback effect on total magnetic field due to plasma motion identified in other studies is not found to be present in the working conditions of the AF-MPDT examined here. V C 2013 AIP Publishing LLC.