A systematic investigation of gain-modulated neodymium-doped fiber laser is carried out. The numerical model of gain modulated thulium-doped neodymium fiber laser oscillator and amplifier is constructed based on the rate equation and transmission equation, and solved by the time domain finite difference method. The nano-second laser output in the 2 μm band with high conversion efficiency, narrow linewidth, and single polarization was obtained by numerical simulation. A 2 μm pulsed laser output with a maximum power of 340 mW and amplification of 42 dB was obtained using a master oscillator, and a 2 μm pulsed laser output with a maximum power of 9.13 W was obtained using a power amplifier. The model can be used as a reference for experimental research and engineering design of this type of laser.