AbstractThis paper is concerned with the investigation of steady, two‐dimensional, and laminar boundary layer flow of a biomagnetic fluid over a continuously moving sheet in the presence of a magnetic dipole. The magnetic field resulting from the dipole is contemplated to be strong enough to saturate the biofluid. The magnetization of the fluid is regarded to be a linear function of temperature. The solution procedure involves the reduction of a nonlinear system of coupled PDEs into ODEs that comprise five parameters. The transformed ODEs along with the boundary conditions are then solved numerically by introducing an efficient numerical technique based on the finite difference algorithm. The velocity, as well as temperature profiles within the boundary layer, are illustrated at specified values of free stream velocity (), wall velocity () and ferrohydrodynamic interaction parameter (). The demonstration of the Nusselt number and friction factor are achieved for various governing parameters. Considering a specified Prandtl number () and normalized velocity difference , higher values of the friction factor are obtained for increasing and than that of . Whereas for the Nusselt number, we attain higher values for decreasing and . Moreover, an increase in the velocity ratio results in a decrease in both heat transfer rate as well as friction factor. Furthermore, as increases, the heat transfer rate decreases yet we get higher values for higher and . In the case of friction factor, it increases with increasing and gives higher values for lower and higher . We have also depicted the streamlines for the 2‐D boundary layer flow of the biomagnetic fluid for different . The graphical results manifest that the flow field is greatly impacted by the ferrohydrodynamic field, which could be of interest in medical as well as bioengineering implementations, like, magnetic drug delivery in blood cells, separating RBCs as well as controlling the flow of blood during surgical procedures.