In this paper, we have investigated the momentum and heat transfer in an unsteady separated stagnation-point flow of a viscous fluid over a plane surface advancing towards or receding from the normal stagnation flow which impinges on the surface with a variable strain rate s(t), causing the unsteadiness in this flow problem. The flow and heat transfer characteristics are therefore governed by the flow strength (stagnation) parameter a, unsteadiness parameter β, plate velocity (normal) parameter α and Prandtl number Pr. The current analysis ensures the existence of the self-similar solutions to this flow problem only when the plate velocity varies directly to the square root of the strain rate s(t). A closed form analytic solution of this flow problem is found for the specific relational values of β=2a. The solutions of this flow problem are non unique only under the negative values of β. When the plate surface is advancing towards the normal stagnation flow (i.e., when α> 0), the self-similar boundary layer solution continues for any given values of a and β, whereas for receding of the plate surface from the incoming flow (i.e., for α< 0) the boundary layer solution does not exist after a certain value of α depending upon the values of a and β. In the case where receding of the plate surface occurs, the features of the boundary layer flows depend highly on the sum values of the parameters a and β. For (a+β)> 0, the boundary layer solution ends with an attached flow solution, while it gets terminated at a reverse flow solution for (a+β)< 0. And for (a+β)= 0, the governing boundary layer equations provide us with the trivial (zero) solutions which are unable to capture the free boundary conditions.