A fast discharge current pulse (50 ns FWHM) was used to create a highly ionized plasma in a 500‐&mgr;m‐diam lithium hydride capillary 3.8 cm in length. Time‐resolved extreme ultraviolet spectra of the capillary plasma show simultaneous line emission from highly ionized (O VI) and singly ionized (O II) species, indicating the existence of a hot‐core plasma (Te>25 eV) surrounded by a significantly cooler plasma near the walls. The intensity of the 72.9 nm emission corresponding to the Li III 3–2 transition was observed to increase during the decay of the current pulse, consistent with excitation by electron‐ion recombination. The results are relevant to the possibility of amplification of extreme ultraviolet radiation in a discharge‐pumped device.