A boundary layer analysis is performed to study the influence of thermal radiation and buoyancy force on two-dimensional magnetohydrodynamic flow of an incompressible viscous and electrically conducting fluid over a vertical stretching sheet embedded in a porous medium in the presence of inertia effect. The governing system of partial differential equations is first transformed into system of ordinary differential equations using self-similarity transformation. A special form for magnetic field is chosen to obtain the similarity solution. The transformed boundary layer equations are solved numerically for some important values of the physical parameters. The present results are compared with the previously published papers and the results are found to be in excellent agreement. The important features of the flow, heat and mass transfer characteristics for different values of thermal radiation, porous permeability, magnetic field and buoyancy parameters are analyzed and discussed. The effects of various physical parameters on the skin friction coefficient, local Nusselt number and local Sherwood number are also presented. It is found that increase in the value of thermal radiation parameter R 1 increases the skin friction coefficient and Sherwood number whereas reverse trend is seen for the local Nusselt number.