The purpose of this paper is to develop the 2-Dim Lagrangian Hydrocode for the analysis of large deformations of solids with implementation of the contact algorithm. First, th e governing equations are discretized into a system of algebraic equations. For more accurate and robust contact force computation. the defense node contact algorithm was adopted and implemented. For the verification of the code developed, two cases are carried out; the Taylor-Impact test and two bodies impact. The von -Mises criterion is implemented into the code with the Shock equation of state. The simulation results show a good agreement compared with the published experimental data and results from the commercial code. It is necessary to implement several material models and failure models for applications to different impact and penetration problems.