The entropy generation due to steady laminar forced convection fluid flow through parallel plates microchannel is investigated numerically. The effect of Knudsen, Reynolds, Prandtl, Eckert numbers and the nondimensional temperature difference on entropy generation within the microchannel is discussed. The fraction of the entropy generation due to heat transfer to the total entropy generation within the microchannel is studied in terms of Bejan number. The entropy generation within the microchannel is found to decrease as Knudsen number increases, and it is found to increase as Reynolds, Prandtl, Eckert numbers and the nondimensional temperature difference increase. The contribution of the viscous dissipation in the total entropy generation increases as Knudsen number increases over wide ranges of the flow controlling parameters.