Abstract: By MEPH2Y, a two-dimensional finite difference Eulerian hydrocode, this paper simulated the action process of a shaped charge. The process includes the following: (1) the formation and propagation of the detonation wave, and its interaction with other materials; (2) the formation, stretching, decompression and rupture of the jet under high-temperature and high-pressure conditions; (3) the collision of jet (or projectile) with target; (4) the notch formation and dynamic response of the target. The mathematical model and numerical method used in the program were introduced and some simulated results were compared with the experimental results. Comparisons show that the simulated results are in agreement with the experiment results and the MEPH2Y code is appropriate to be used to simulate the shaped charge problems.