Main objective of this study was evaluating distance education service quality and studentrnsatisfaction the case of Addis Ababa University, school of commerce. Further, this studyrnexamines the relationship among service quality dimension and student satisfaction and therndominant service quality dimension that influence student satisfaction in distance program. Tornattain this objective, questionnaire was designed categorized under five dimensions of thernHEdPERF model. The sample consists of 191 respondent selected based on cluster andrnconvenience sampling procedure. This study used also both primary and secondary data. Therncollected data was analyzed with the help of SPSS version 20.Correlation and multiplernregressions were used to investigate the relationship between dependent and independentrnvariables. The correlation results indicate that there is a positive correlation between therndimensions of service quality and student satisfaction.rnAccordingly from the regression result it is observed that all service quality dimensionsrn(academic aspect, non-academic aspect, reputation, access and program issue) have positivernand significant impact on student satisfaction. Furthermore, 93.5 % of the variations in studentrnsatisfaction are explained by service quality dimensions in Addis Ababa University School ofrnCommerce. Based on this, in order to improve service quality of the institution, the researcherrnsuggested that, the institution should focus more on non-academic and program issue aspectsrnbecause in the researcher mentioned variables had the lowest mean score. In addition reputationrnis the dominant service quality dimension therefore; university management should works on thernindicator of this dimension