The gradient-drift instabilities of partially magnetized plasmas in plasma devices with crossed electric and magnetic fields are investigated in the framework of the two-fluid model with finite electron temperature in an inhomogeneous magnetic field. The finite electron Larmor radius (FLR) effects are also included via the gyroviscosity tensor taking into account the magnetic field gradient. This model correctly describes the electron dynamics for kâŠ¥ ρe>1 in the sense of Padé approximants (here, kâŠ¥ and ρe are the wavenumber perpendicular to the magnetic field and the electron Larmor radius, respectively). The local dispersion relation for electrostatic plasma perturbations with the frequency in the range between the ion and electron cyclotron frequencies and propagating strictly perpendicular to the magnetic field is derived. The dispersion relation includes the effects of the equilibrium E×B electron current, finite ion velocity, electron inertia, electron FLR, magnetic field gradients, and Debye length effects. The necessary and sufficient condition of stability is derived, and the stability boundary is found. It is shown that, in general, the electron inertia and FLR effects stabilize the short-wavelength perturbations. In some cases, such effects completely suppress the high-frequency short-wavelength modes so that only the long-wavelength low-frequency (with respect to the lower-hybrid frequency) modes remain unstable. © 2018 Author(s).