An analysis is made for an unsteady two-dimensional boundary layer flow of a viscous, incompressible electrically conducting dusty fluid in the vicinity of a stagnation point on a stretching sheet. Fluid flow is considered in a porous medium under the influence of transverse magnetic field in the presence of internal heat generation/absorption. Using a time-dependent stream function, the governing partial differential equations corresponding to the momentum and energy transfer are converted into a set of nonlinear ordinary differential equations by applying the suitable similarity variables. Numerical solutions of these equations are obtained by the Runge-Kutta-Fehlberg-45 method. The effect of the strength of the uniform magnetic field, unsteadiness parameter, the ratio of free stream velocity parameter and stretching parameter, Prandtl number, dust interaction parameter, suction parameter, Eckert number, and the heat generation/absorption coefficients on both the fluid flow and heat transfer are presented.