The present investigation deals with the effect of haematocrit and the peripheral layer on blood flow characteristics due to the presence of a composite stenosis in arteries. To estimate the effect of haematocrit and the peripheral layer, the flowing blood is assumed represented by a two layered model consisting of a core region of suspension of all the erythrocyte assumed to be a particle-fluid suspension (i.e., a suspension of all erythrocyte in plasma) surrounded by a peripheral layer of plasma (Newtonian fluid). The expression for the flow characteristics, namely, the impedance, the wall shear stress and the shear stress at the stenosis throat has been derived. To validate the applicability of the present model quantitative, comparative analysis is performed through graphical representation of numerical results obtained by developing computer programming.