The stability of mixed Rossby gravity (MRG) waves has been investigated numerically using three-dimensionally consistent high-resolution simulations of the continuously stratified primitive equations. For short enough zonal wavelength, the westward phase propagating MRG wave is strongly destabilized by barotropic shear instability leading to the formation of zonal jets. The large-scale instability of the zonally short wave generates zonal jets because it consists primarily of sheared meridional motions, as shown recently for the short barotropic Rossby wave problem. Simulations were done in a variety of domain geometries: a periodic re-entrant channel, a basin with a short MRG wave forced in its western part and a very long channel initialized with a zonally localized MRG wave. The characteristics of the zonal jets vary with the geometry. In the periodic re-entrant channel, barotropic zonal jets dominate the total flow response at the equator and its immediate vicinity. In the other cases, the destabilization leads to zonal jets with quite different characteristics, especially in the eastward group propagating part of the signal. The most striking result concerns the formation of zonal jets at the equator, alternating in sign in the vertical, with vertical scale short compared to the scale of the forcing or initial conditions. A stability analysis of a simplified perturbation vorticity equation is formulated to explain the spatial scale selection and growth rate of the zonal jets as functions of the characteristics of the basic state MRG wave. For both types of zonal jets, the model predicts that their meridional scales are comparable to the zonal scale of the MRG wave basic state, while their growth rates scale as μ xs221D Fr |k|, where Fr is the Froude number of the meridional velocity component of the basic state and k its non-dimensional zonal wavenumber. The vertical scale of the baroclinic zonal jets corresponds to the dominant harmonic ppeak of the basic state in the fastest growing mode, given by ppeak≈0.55k2. Thus, the shorter the zonal wavelength of the basic state MRG wave, the narrower the meridional scale of the zonal jets, both barotropic and baroclinic, with the vertical scale of the baroclinic jets being tied to their meridional scale through the equatorial radius of deformation, which decreases as the square root of the vertical wavenumber. The predictions of the spatial scales are in both qualitative and quantitative agreement with the numerical simulations, where shorter vertical scale baroclinic zonal jets are favoured by shorter-wavelength longer-period MRG wave basic states, with the vertical mode number increasing as the square of the MRG wave period. An Appendix deals with the case of zonally long and intermediate wavelength MRG waves, where a weak instability regime causes a moderate adjustment involving resonant triad interactions without leading to jet formation. For eastward phase propagating waves, adjustment does not lead to significant angular momentum redistribution.