The magnetohydrodynamic (MHD) stagnation point flow over a shrinking or stretching flat sheet is investigated. The governing partial differential equations (PDEs) are reduced into a set of ordinary differential equations (ODEs) by a similarity transformation and are solved numerically with the help of MATLAB software. The numerical results obtained are for different values of the magnetic parameter M, heat generation parameter Q, Prandtl number Pr and reciprocal of magnetic Prandtl number ε. The influences of these parameters on the flow and heat transfer characteristics are investigated and shown in tables and graphs. Two solutions are found for a certain rate of the shrinking strength. The stability of the solutions in the long run is determined, and shows that only one of them is stable. It is found that the skin friction coefficient f ″ ( 0 ) and the local Nusselt number − θ ′ ( 0 ) decrease as the magnetic parameter M increases. Further, the local Nusselt number increases as the heat generation increases.