The hydro-magnetic flow of a viscous fluid near a stagnation point on a linearly stretching sheet with variable thermal conductivity and heat source is investigated. The governing non-linear partial differential equations of momentum and energy are transformed into non-linear ordinary differential equations using the usual similarity transformation. The resulting problem is then solved using perturbation technique. The effect of variable thermal conductivity, magnetic field and some other important parameters encountered in the problem are discussed. The result shows that the observed parameters have significance influence on the flow.