This study was to analyze the influence of service quality on customer satisfaction usingrnSERVQUAL model with regards to public transportation, specifically the Addis AbabarnLight Rail Transit Service. In this study, level of customer’s satisfaction is examined byrnthe SERVQUAL method comprised five dimensions namely reliability, assurance,rntangibility, empathy and responsiveness to wards service quality, the gap betweenrnpassengers’ perceptions and expectations of service quality was examined with the helprnof the GAP (SERVQUAL) model that was established by Parasuraman, Zeithaml andrnBerry and also the impact of service quality dimensions on customer satisfaction wasrnanalyzed. The research methodology is descriptive and explanatory designs in nature.rnThe researcher used convenient sampling method in order to select the sample from thernpopulation. A total of 331 questionnaires were collected from customers. The datarnanalysis was conducted through statistical techniques such as descriptive statistics, andrninferential statistics using SPSS version 20. The finding indicates that service quality gaprnis wider in reliability, responsiveness, empathy, and assurance and tangible inrndescending order. Based on the result of the correlation, it shows that reliability,rnassurance, responsiveness, empathy and tangibility are positively and moderatelyrncorrelated with customer satisfaction and also the multiple regression results revealedrnthat all the five SERVQUAL dimensions and Overall Service Quality influencernpassenger’s satisfaction. According to the result Overall service quality, followed byrnassurance, responsiveness, reliability, tangibility and empathy are positively influencernpassengers satisfaction in descending order with beta value of.766, 0.168,0.166, 0.152,rn0.150 and 0.138 respectively in AALRT service. Furthermore, 68.8 % of the variations inrncustomer satisfaction are explained by service quality dimensions in AALRT service.rnBased on the findings of the study, the researcher forwarded some recommendations tornAALRT service corporate management. The corporate management should work on allrnthe service quality dimensions to improve and maintain its passenger satisfaction.