The aim of this research is to asses possible effect of service quality of CBE on customerrnsatisfaction using service quality dimensions tangibility, reliability, responsiveness, empathy andrnassurance. The population of this research consists of commercial bank of Ethiopia North Addisrndistrict. The Perceived service quality of the bank measurable by using 26 items SERVQUALrnscale. In order to test the research structural equation modeling technique was used empiricalrnfindings of the research show that perceived service quality of the bank affect customerrnsatisfaction directly and positively. The correlation analysis it was found that all the five servicernquality dimensions are positively correlated with overall customer satisfaction .The regressionrnanalysis tangibility and responsiveness found to be the most important dimension affectingrncustomer satisfaction with the highest beta value. From this we can say that perceived servicernquality leads to satisfaction.