A comprehensive numerical study is conducted to investigate effect of melting on flow and heat transfer of incompressible viscous dusty fluid near two-dimensional stagnation-point flow over a stretching surface, in the presence of thermal radiation, non uniform heat source/sink and applied magnetic field. Using suitable transformations, the governing nonlinear partial differential equations are transformed in to a set of coupled nonlinear ordinary differential equations and then they are solved numerically. The influence of the various interesting parameters on the flow and heat transfer is analyzed and discussed through plotted graphs in detail. Comparison of the present results with existing results is shown and a good agreement is observed. We found that the velocity and temperature fields increase with an increase in the melting process of the stretching sheet.