An ion beam propagating through a magnetized dusty plasma drives Kelvin Helmholtz Instability (KHI) via Cerenkov interaction. The frequency of the unstable wave increases with the relative density of negatively charged dust grains. It is observed that the beam has stabilizing effect on the growth rate of KHI for low shear parameter, but for high shear parameter, the instability is destabilized with relative density of negatively charged dust grains. (C) 2015 AIP Publishing LLC.