This paper deals with the boundary layer flow of electrically conducting dusty fluid over a stretching surface in the presence of applied magnetic field. The governing partial differential equations of the problem are transformed to nonlinear nondimensional coupled ordinary differential equations using suitable similarity transformations. The problem is now fully specified in terms of characterizing parameters known as fluid particle interaction parameter, magnetic field parameter, and mass concentration of dust particles. An exact analytical solution of the resulting boundary value problem is presented that works for all values of the characterizing parameters. The effects of these parameters on the velocity field and the skin friction coefficient are presented graphically and in the tabular form, respectively. We emphasize that an approximate numerical solution of this problem was available in the literature but no analytical solution was presented before this study.