The problem of unsteady natural convection in a square region filled with a fluid-saturated porous medium having non-uniform internal heating and heated laterally is considered. The heated wall surface temperature varies sinusoidally with the time about fixed mean temperature. The opposite cold wall is maintained at a constant temperature. The top and bottom horizontal walls are kept adiabatic. The flow field is modelled with the Darcy model and is solved numerically using a finite difference method. The transient solutions obtained are all periodic in time. The effect of Rayleigh number, internal heating parameters, heating amplitude and oscillating frequency on the flow and temperature field as well as the total heat generated within the convective region are presented. It was found that strong internal heating can generate significant maximum fluid temperatures above the heated wall. The location of the maximum fluid temperature moves with time according to the periodically changing heated wall temperature. The augmentation of the space-averaged temperature in the cavity strongly depends on the heating amplitude and rather insensitive to the oscillating frequency.