Dissertation Submitted to Mzumbe University, in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-Corporate M) of Mzumbe University.The aim of the study was to assess the customers’ perception and satisfaction in Tanzania commercial banks. Data were collected through questionnaire, person interview and documentary methods. A total of 45 sample sizes were used among the customers. The researcher found out that, service businesses have been growing rapidly in recent decades, while customer demand for high quality service is increasing. This is certainly the case at the Azania Bank. To remain competitive, the banks need to analyze service quality towards customer satisfaction.From findings of the study, the researcher found out assurance, tangibles, empathy and responsiveness as the main effective possible factors that may influence service quality of towards customer satisfaction. Customers accept that there is a great relationship between service quality and customer satisfaction, they added that good quality services satisfy the customers in the bank industry. The findings in the field have revealed that assurance dimension was at the high level, followed by empathy and responsiveness which determine the highest customer satisfaction. Most customers expected staff to be trustworthy The study recommends that the employees at front desk are the key personnel who form the impression of the bank. Therefore, their appearance needs to be neat. They should strive to provide each customer a personalized touch. So that their commitment with their respective bank is lasting, the bank management should focus on the main factors that contributing towards customer satisfaction, for example in the bank industry, customer satisfaction of bank service quality was influenced by the two variables/dimensions namely tangibles, empathy and the bank management has to more interaction with the bank customers to understand their needs and expectation. With this practice, more customers was attracted and enjoyed with the service provided.