In this paper, influence of an external magnetic field on ferrofluid flow and heat transfer in a semi annulus enclosure with sinusoidal hot wall is investigated. The governing equations which are derived by considering the both effects of FHD (Ferrohydrodynamic) and MHD (Magnetohydrodynamic) are solved via CVFEM (Control Volume based Finite Element Method). The effects of Rayleigh number, nanoparticle volume fraction, Magnetic number arising from FHD and Hartmann number arising from MHD on the flow and heat transfer characteristics have been examined. Results show that Nusselt number increases with augment of Rayleigh number and nanoparticle volume fraction but it decreases with increase of Hartmann number. Magnetic number has different effect on Nusselt number corresponding to Rayleigh number. Also it can be found that for low Rayleigh number, enhancement in heat transfer is an increasing function of Hartmann number and decreasing function of Magnetic number while opposite trend is observed for high Rayleigh number. (C) 2014 Elsevier Ltd. All rights reserved.