This paper presents the steady-state and transient analysis of the fluid squeezed between two long parallel plates. The governing coupled partial differential equations have been discretized by element free Galerkin method and implemented using variational approach. Penalty and Lagrange multiplier techniques have been utilized to enforce the essential boundary conditions. Four point Gauss quadrature has been used to evaluate the viscous terms in the coefficient matrix whereas reduced integration scheme (i.e. one point Gauss quadrature) has been used to evaluate the penalty terms over two-dimensional domain ( Ω). Cubicspline, exponential and rational weight functions have been used in the present work. The results obtained by EFG method are compared with those obtained by finite element and analytical methods. The effect of scaling and penalty parameters on EFG results has been discussed in detail.