Thermally modulated heating is applied to a horizontal channel to analyze its effect on drag reduction using numerical techniques. Periodic heating patterns are applied to the upper and lower walls using a sinusoidal function. The governing equations are solved using MATLAB. Results show that drag reduction is highest when the phase shift between the upper and lower wall heating is zero. Increasing uniform background heating along the walls also increases drag reduction, up to 110% higher for some cases. However, the improvement in drag reduction due to uniform heating is only significant at lower Reynolds numbers and for higher values of uniform heating. Vertical heat transfer, measured by the average Nusselt number, also increases with background heating.