The present research investigates second law analysis of laminar flow over a backward facing step (BFS). Entropy generation due to separation, reattachment, recirculation and heat transfer is studied numerically. Local entropy generation distributions were obtained by solving momentum, energy, and entropy generation equations. The effect of dimensionless temperature difference number (τ) and Brinkman number (Br) on the total entropy generation number (Ns) was investigated. Moreover, the effect of Reynolds number (Re) on the value of Ns was reported. It was found that as Re increased the value of Ns increased. Also, as Br increased the value of Ns increased. However, it was found that as τ increased the value of Ns decreased. For the bottom wall of the channel, the maximum value of Ns occurs inside the recirculation zone and reduces to a minimum value at the point of reattachment point. Also, for Re ≥ 500, a second peak of entropy generation appears after the reattachment point. For the top wall of the channel, the value of Ns has a maximum value directly above the step and its value reduced downstream the step. The contribution of the top wall to Ns downstream the point of reattachment was relatively small.