We study extreme ultraviolet (EUV) radiation induced defects in single-layer graphene. Two mechanisms for inducing defects in graphene were separately investigated: photon induced chemical reactions between graphene and background residual gases, and breaking sp2 bonds, due to photon and/or photoelectrons induced bond cleaving. Raman spectroscopy shows that D peak intensities grow after EUV irradiation with increasing water partial pressure in the exposure chamber. Temperature-programmed desorption (TPD) experiments prove that EUV radiation results in water dissociation on the graphene surface. The oxidation of graphene, caused by water dissociation, is triggered by photon and/or photoelectron induced dissociation of water. Our studies show that the EUV photons break the sp2 bonds, forming sp3 bonds, leading to defects in graphene.