The physical model considered here is a horizontal layer of fluid heated below and cold above with heat-generating conducting body placed at the center of the layer. The dimensionless thermal conductivities of body considered in the present study are 0.1, 1 and 50. The dimensionless temperature difference ratios considered are 0.0, 0.25, 2.5 and 25. Two-dimensional solution for unsteady natural convection is obtained using an accurate and efficient Chebyshev spectral methodology for variety of Rayleigh number from 10(3) to 10(6). Multi-domain technique is used to handle square-shaped heat-generating conducting body. The fluid flow, heat transfer and time-and surface-averaged Nusselt number are investigated for various ranges of Rayleigh number, thermal conductivity ratio and dimensionless temperature difference ratio. The results for the case of conducting body with heat generation are also compared to those without heat generation to see the effects of heat generation from the conducting body on the fluid flow and heat transfer in the enclosure. (c) 2006 Elsevier Ltd. All rights reserved.