Nowadays, the banks are concentrate on promoting the concept of ebanking among their customers since it can provide speedier, faster and reliable services to the customers better than traditional banking. Therefore, the purpose of this research is to investigate in to the impact of electronic banking (E-banking service quality on customer satisfaction using service quality dimensions (SERVQUAL) model proposed by Parasurman et al., (1988) and its relationship with that of demographic characteristics (educational level, occupation, gender, income level and age) and major challenges of e- banking service quality in commercial bank of Ethiopia Addis Ababa . required data was collected through customerâ€™s survey which adopted descriptive, explanatory and exploratory research design primarily used quantitative and qualitative data that was collected through a structured questionnaire and informal interview. In terms of sampling techniques stratified proportionately technique which is a type of probability sampling technique was used among customers of the selected branches with the aid of randomly administered questionnaire. The target population of study was randomly selected branches of CBE in Addis Ababa. Primary and secondary sources of data are extensively employed in this study. Tables, percentage, linear regression and chi-square independence test statistic are specifically used in the study to see the relationship between demographic characteristics and e-banking service quality. Collected primary data from questionnaire and interview were gone to be analyzed using statistical tools such as mean, standard deviation, correlation and multiple regressions to determine the impact of e-banking service quality on customer satisfaction in selected commercial banks Addis Ababa. A result indicates that, reliability, responsiveness, assurance, accessibility, security, ease of use and efficiency have significant impact on customers satisfaction. There by improves customer service delivery, better management, deals with customer complaints improves customer satisfaction in CBE Addis Ababa. rnKeywords: Electronic Banking, Customer Satisfaction, Service Quality, SERVQUAL