The flow of a heated ferrofluid over a linearly stretching sheet is studied in the pres-
ence of an applied magnetic field due to a magnetic dipole. It is assumed that the applied
magnetic field is sufficiently strong to saturate the ferrofluid and the variation of magnetization
with temperature can be approximated by a non linear function of temperature difference. By
introducing appropriate non dimensional variables the problem is described by a coupled and
non linear system of ordinary differential equations with its boundary conditions which is solved
numerically by applying an efficient numerical technique based on the common finite difference
method. The obtained results are presented graphically for different values of the parameters
entering into the problem under consideration and the dependence of the flow field from these
parameters is discussed. A comparative study, with a similar problem which has already been
solved and documented in literature, is also made wherever necessary, emphasizing the impor-
tance of the non-linear variation of magnetization with temperature. Emphasis is also given in
the obtained results for Prandtl number equal to 21 and critical exponent δ = 0.368 which are
important and interesting in Biomagnetic Fluid Dynamics.