A steady transonic dilute premixed combustion in a diverging channel is investigated by using asymptotic analysis. This model explores the nonlinear interactions between the near-sonic speed of the flow, the small changes in geometry from a straight channel, and the small heat release due to the one-step first-order Arrhenius chemical reaction. The reactive flow is described by a nonhomogeneous transonic small-disturbance (TSD) equation coupled with an ordinary differential equation for the calculation of the reactant mass fraction in the combustible gas. Also the asymptotic analysis reveals the similarity parameters that govern the reacting flow problem. The results show the complicated nonlinear interaction between the convection, reaction, and geometry effects and its effect on the flow behavior.