Abstract. This paper considers the problem of steady, boundary layer flow and heat transfer of dusty nanofluid over a stretching surface in the presence of non-uniform heat source/sink and nonlinear thermal radiation with Biot number effect. The base fluid (water) is considered with silver (Ag) nanoparticles along with suspended dust particles. The governing equations in partial form are reduced to a system of non-linear ordinary differential equations using suitable similarity transformations. An effective Runge-Kutta-Fehlberg fourth-fifth order method along with shooting technique is used for the solution. The effects of flow parameters such as nanofluid interaction parameter, magnetic parameter, solid volume fraction parameter, Prandtl number, heat source/sink parameters, radiation parameter, temperature ratio parameter and Biot number on the flow field and heat-transfer characteristics were obtained and are tabulated. Useful discussions were carried out with the help of plotted graphs and tables. Under the limiting cases, comparison with the existing results was made and found to be in good agreement.