I want to control dimming using pwm and arduino which works on 3.3v. I am using Led panel which works on 12V and 5W.
Here is schematic which i am planning to use, Is there any thought on it?

 

Remove the "optional" pull resistor and C8 & C9.

Add a very low value gate series resistor. (optional)

 

Post # 2 is good advice, BECAUSE slowing the switching on and off for the mosfet will greatly increase the time spent in the linear mode, which will cause a lot more heat to be generated. So it may fail from overheating. I did not do the math to verify it will cause failure, but certainly it will generate a lot of heat, wasting a lot of power.

 

Static losses: Rds(on) @ Vgs 2.5v = 52mohm, 12v @ 5W = 420mA, P(on) = .42^2 * .052 = 9mW

Switching losses @400Hz PWM, 100nS switching, P(sw) = 2 * Vds * Ids * t(sw) * freq = 2 * 12 * 0.42 * 100e-9 * 400 = 0.4 mW

Total losses <10mW, no chance of overheating...

 

JFTR my suggestions had nothing to do with overheating, they are simply unnecessary components.