Studies are made on the viscoelastic fluid flow and heat transfer characteristics over a stretching sheet with frictional heating and internal heat generation or absorption. The heat transfer analysis has been carried out for the cases of prescribed Surface temperature (PST) and prescribed surface heat flux (PHF). The momentum equation is decoupled from the energy equation for the present incompressible boundary layer flow problem with constant physical parameters. Exact solution for the velocity field and the skin-friction are obtained. Also, the solutions for the temperature and heat transfer characteristics are obtained in terms of Kummer's function The work due to deformation in energy equation, which is essential while formulating the viscoelastic boundary layer flow problems, is considered. This paper examines the effect of viscoelastic parameter, Eckert number, Prandtl number and non-uniform heat source/sink parameter on temperature distribution, wall temperature gradient for PST-case and wall temperature for PHF-case (C) 2009 Elsevier Ltd All rights reserved.