A direct approach is used to solve the Riemann problem for a quasilinear hyperbolic system of equations governing the one dimensional unsteady planar flow of an isentropic, inviscid compressible fluid in the presence of dust particles. The elementary wave solutions of the Riemann problem, that is, shock waves, rarefaction waves and contact discontinuities are derived and their properties are discussed for a dusty gas. The generalised Riemann invariants are used to find the solution between rarefaction wave and the contact discontinuity and also inside rarefaction fan. Unlike the ordinary gasdynamic case, the solution inside the rarefaction waves in dusty gas cannot be obtained directly and explicitly; indeed, it requires an extra iteration procedure. Although the case of dusty gas is more complex than the ordinary gas dynamics case, all the parallel results for compressive waves remain identical. We also compare/contrast the nature of the solution in an ordinary gasdynamics and the dusty gas flow case.