Abstract- Hydrodynamics and Heat transfer of a gaseous flow in microchannels is performed numerically. Velocity and temperature at the channel inlet is uniform and the rarefaction effect is imposed to the problem via velocity slip and temperature jump boundary conditions, according to the slip flow regime. The channel is sufficiently long to reach fully developed flow at the outlet. The numerical methodology is based on the control volume finite difference scheme and discrete equations are solved using SIMPLE algorithm. Effects of various parameters such as viscous dissipation, rarefaction, axial conduction and thermal creep on heat transfer have been considered. The results indicate that the Nusselt number in microchannels has a different value than in conventional channels. Local Nu number is found to experience a jump by the presence of viscous dissipation. The magnitude of the jump is independ of the Brinkman number values. Heat transfer is affected in two opposite directions by rarefaction increasing. Also, as Peclet number increases, there is a weak increase in fully developed Nu number values but there is significant effect of Kn number on it.