Second law of thermodynamics analysis is formulated for the case of laminar mixed convection in an inclined square lid-driven enclosure in the presence of magnetic field. Vertical sides of the enclosure moves upward when inclination angle is zero. Governing equations of flow and temperature in the form of stream function-vorticity formulation were solved numerically using the differential quadrature method. Governing parameters are: Richardson number (from 0.01 to 100), Prandtl number (from 0.1 to 1.0), inclination angle of enclosure (from 0 to 180), Hartmann number (from 0 to 100) and magnetic field direction (0). It is found that the inclination angle of enclosure is effective parameter on entropy generation especially for higher Richardson number (Ri > 1) due to domination of natural convection. However, Hartmann number is effective on both heat transfer and entropy generation for all values of Richardson and Prandtl numbers and it decreases the convective fluid flow and entropy generation.