This work examines the behavior of an external magnetic field-induced Al2O3-water nanofluid flow between two parallel plates, with a particular emphasis on low Reynolds number scenarios. Understanding the dynamics of magnetohydrodynamic (MHD) flows in applications including energy systems, cooling systems, and medicinal devices depends on solving this problem. For the first time, a new two-phase lattice Boltzmann method was used to simulate the flow in conjunction with the mixture model. This methodology was specifically designed for nanofluid flow in the presence of magnetic field. Three coupled transport equations for flow velocity, concentration of nanoparticles, and magnetic field intensity are solved using this method. Three various cases were examined numerically. By comparing the simulated velocity profiles with analytical solutions in the first case, model validation was accomplished, demonstrating a strong agreement with less than 1 % variance. The impact of different inflow nanoparticle volume fractions (0.05 and 0.01) on the velocity field at various Reynolds numbers (0.5, 1, 10) and Hartmann numbers (0, 10, 20) was investigated in the second case. The findings showed that for Reynolds numbers of 0.5, 1, and 10, respectively, the velocity magnitude dramatically fell by approximately 75 %, 68 %, and 30 % as the Hartmann number grew from 0 to 20. Alongside this decrease, vortices began to form at Hartmann numbers of 10 and 20. Furthermore, the influence of the magnetic field diminished as the Reynolds number increased from 0.5 to 10, resulting in a noticeable reduction in vortex intensity. In the third case, where the nanoparticle volume fractions at the inlet were closer (e.g., 0.03 and 0.02), the intensity of the vortices decreased compared to the second case. The study demonstrates the robustness of the proposed model and its applicability across scientific and engineering domains. The novelty lies in quantifying MHD effects on nanofluid flow and particle distribution using a two-phase lattice Boltzmann approach, offering more precise and efficient simulations than existing methods. The findings provide new insights into the interaction between magnetic fields and nanofluids, especially at low Reynolds numbers, and emphasize the critical role of nanoparticle distribution in flow dynamics.