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Magneto-thermomechanical interaction between heated viscous incompressible ferrofluid and a cold wall in the presence of a spatially varying magnetic field is investigated. A model for two dimensional ferrofluid flows is constructed. The influence of magnetic dipole in a Newtonian ferrofluid is characterized. The dynamic response of heated ferrofluid in a non-uniform magnetic field is studied along a nonlinearly stretching sheet with changing surface temperature. The nonlinearity is considered as power law relationship. Similarity transformation is applied to convert system of partial differential equations into ordinary differential equations and then solved numerically. The impact of the parameters on the velocity and temperature are explored numerically. It is found that the magneto-thermomechanical interaction slows down the motion of fluid particles. At the surface, the skin friction coefficient decreases and the rate of heat transfer increases with increasing ferromagnetic parameter or with increasing power law exponent.