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This article addresses the boundary layer flow and heat transfer in third grade fluid over an unsteady permeable stretching sheet. The transverse magnetic and electric fields in the momentum equations are considered. Thermal boundary layer equation includes both viscous and Ohmic dissipations. The related nonlinear partial differential system is reduced first into ordinary differential system and then solved for the series solutions. The dependence of velocity and temperature profiles on the various parameters are shown and discussed by sketching graphs. Expressions of skin friction coefficient and local Nusselt number are calculated and analyzed. Numerical values of skin friction coefficient and Nusselt number are tabulated and examined. It is observed that both velocity and temperature increases in presence of electric field. Further the temperature is increased due to the radiation parameter. Thermal boundary layer thickness increases by increasing Eckert number. [ABSTRACT FROM AUTHOR]