We consider the dynamical Morris–Thorne metric with radiating heat flow. By matching the interior Morris–Thorne metric with an exterior Vaidya metric we trace out the collapse solutions for the corresponding spherically symmetric inhomogeneous distribution of matter. The solutions obtained are broadly of four different types, giving different end state dynamics. Corresponding to three of the solutions we elaborate the collapsing dynamics of the Morris–Thorne type evolving wormhole. We show that for all those cases where collapse upto zero proper volume is obtained in finite time, the ensuing singularity is always a black hole type. However our solutions can also show other end states, like oscillating wormhole-black hole pair or infinite time contracting universe or a conformal past matter dominated universe. In all the cases we have worked out the background dynamics and physics of the solution. All our solutions are illustrated with appropriate graphical descriptions.