The effect of a transverse magnetic field on two-phase stratified flow in horizontal and inclined channels is studied. The lower heavier phase is assumed to be an electrical conductor (e.g., liquid metal), while the upper lighter phase is fully dielectric (e.g., gas). The flow is defined by prescribed flow rates in each phase, so the unknown frictional pressure gradient and location of the interface separating the phases (holdup) are found as part of the whole solution. It is shown that the solution of such a two-phase Hartmann flow is determined by four dimensionless parameters: the phases’ viscosity and flow-rate ratios, the inclination parameter, and the Hartmann number. The changes in velocity profiles, holdups, and pressure gradients with variations in the magnetic field and the phases’ flow-rate ratio are reported. The potential lubrication effect of the gas layer and pumping power reduction are found to be limited to low magnetic field strength. The effect of the magnetic field strength on the possibility of obtaining countercurrent flow and multiple flow states in concurrent upward and downward flows, and the associated flow characteristics, such as velocity profiles, back-flow phenomena, and pressure gradient, are explored. It is shown that increasing the magnetic field strength reduces the flow-rate range for which multiple solutions are obtained in concurrent flows and the flow-rate range where countercurrent flow is feasible.