The shear instability of magnetized, collisional dusty plasma is investigated in the present work. It is demonstrated that the relative drift between the charged dust and magnetised electrons and ions which give rise to the Hall effect is crucial to this instability. Although the nature of present shear instability is similar to the Kelvin-Helmholtz instability, the role of magnetic field in the present case is important in destabilising waves. The maximum growth rate of the instability is proportional only to the shear gradient and is independent of the ambient magnetic field strength. Most unstable wavenumber is a function of ambient dust parameters.