The analysis includes a steady two-dimensional MHD flow of a dusty fluid near the stagnation point over a permeable stretching sheet with the effect of non-uniform source/sink. Two types of different heating processes are considered namely (i) prescribed surface temperature (PST) and (ii) prescribed wall heat flux (PHF). The governing system of non-linear partial differential equations are transformed into ordinary differential equations using similarity transformations and which are then solved numerically using Runge Kutta Fehlberg fourth-fifth order method. Comparison of the numerical results is made with the existing literature and the results are found to be in good agreement. The effects of the governing parameters on the flow field and heat transfer characteristics are obtained and discussed. It is found that velocity distribution for clean fluid decreases where as dust fluid increases with the increase of fluid particle interaction parameter when lambda > 1 and lambda < 1. (C) 2012 Elsevier Ltd. All rights reserved.