The effect of a large Larmor radius on the stability of an infinitely conducting infinitely extended inhomogeneous plasma with two-dimensional magnetic field has been studied. A dispersion relation is obtained for the homogeneous system, and it is found that it is stable and MHD waves propagate. For an inhomogeneous plasma, a dispersion relation is also obtained and discussed for disturbances propagating transverse to inhomogeneity in (a) a cold plasma and (b) an incompressible plasma. It is found that the inhomogeneous system is unstable in both the cases, in agreement with the results of Lee and Roberts. The values of ωr and ωi are computed numerically, and the variations of ωi>0 and the corresponding ωr with the large-Larmor-radius parameter are shown graphically.