In this study, unsteady MHD boundary layer flow with diffusion of chemically reactive species undergoing first-order chemical reaction over a permeable stretching sheet with suction or blowing and also with power-law variation in wall concentration is investigated. Using similarity transformation, the governing partial differential equations are converted into nonlinear self-similar ordinary differential equations. The transformed equations are then solved by the finite difference method using the quasi-linearization technique. Due to the increase in the unsteadiness parameter, the velocity initially decreases, but after a certain point it increases. A similar effect is also observed in case of concentration distribution. The increase in magnetic parameter causes a decrease in velocity and an increase in concentration. For increasing strength of applied suction both momentum and concentration boundary layer thicknesses decrease. On the other hand, applied blowing has reverse effects. Moreover, the mass transfer from the sheet is enhanced with increasing values of Schmidt number, reaction rate parameter, and also power-law exponent (related to wall concentration distribution). For high negative values of the power-law exponent, mass absorption at the sheet occurs. Moreover, due to increase of unsteadiness, this mass absorption is prevented.