An unsteady magnetohydrodynamic (MHD) two-layered fluids flow and heat transfer in a horizontal channel between two parallel plates in the presence of an applied magnetic and electric field is investigated, when the whole system is rotated about an axis perpendicular to the flow. The flow is driven by a constant uniform pressure gradient in the channel bounded by two parallel insulating plates, when both fluids are considered as electrically conducting, incompressible with variable properties, viz. different viscosities, thermal and electrical conductivities. The transport properties of the two fluids are taken to be constant and the bounding plates are maintained at constant and equal temperatures. The governing partial differential equations are then reduced to the ordinary linear differential equations using two-term series. Closed form solutions for primary and secondary velocity, also temperature distributions are obtained in both the fluid regions of the channel. Profiles of these solutions are plotted to discuss the effects of the flow and heat transfer characteristics, and their dependence on the governing parameters involved, such as the Hartmann number, rotation parameter, ratios of the viscosities, heights, electrical and thermal conductivities