The present paper deals with the numerical solution of MHD flow and heat transfer outside a stretching cylinder. The governing system of partial differential equations is converted into a system of ordinary differential equations using similarity transformation, which is then solved numerically by the Keller-box method. The effects of the parameters involved, namely the magnetic parameter, Prandtl number and Reynolds number on the velocity and temperature fields are thoroughly examined. (C) 2008 Elsevier Ltd. All rights reserved.