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ABSTRACT In today's rapidly evolving business environment, service quality has emerged as a critical factor influencing customer satisfaction and operational efficiency. With increasing competition and rising customer expectations, organizations are required to deliver fast, reliable, and high-quality services. Recent industry reports indicate that the global average customer satisfaction score is approximately 78%, highlighting the growing importance of service quality in shaping customer perceptions. This study examines the impact of service quality on customer satisfaction and operational efficiency in the service sector. In today's highly competitive environment, organizations are required to deliver high-quality services to meet increasing customer expectations and maintain a competitive advantage. The main objective of this research is to analyze how different dimensions of service quality influence customer satisfaction and how these factors contribute to improving operational efficiency. The study is based on primary data collected from 40 respondents using a structured questionnaire. A quantitative approach has been adopted, and the data has been analyzed using simple statistical tools such as percentage analysis and graphical representation. The findings of the study indicate that there is a strong positive relationship between service quality and customer satisfaction. It has been observed that factors such as staff behavior, responsiveness, reliability, and use of technology significantly influence customer perception. Furthermore, the results show that improved service quality leads to enhanced operational efficiency by reducing waiting time and improving service delivery processes. However, certain areas such as delay in services and communication gaps still require improvement. The study concludes that organizations should focus on continuous improvement in service quality and adopt modern technologies to enhance both customer satisfaction and operational efficiency. This research provides useful insights for managers and organizations aiming to improve their service performance and achieve long-term success. In addition to the core findings, the study also emphasizes the growing importance of customer-centric strategies in modern organizations. It highlights that businesses which actively monitor customer feedback and adapt their service processes accordingly are more likely to achieve higher satisfaction levels. The role of continuous improvement and innovation in service delivery has also been identified as a critical factor in sustaining operational efficiency. Moreover, the study underlines the need for organizations to invest in employee training and digital transformation to enhance service performance. These insights make the research relevant for both academic purposes and practical implementation in real-world business environments. Furthermore, the study brings attention to the dynamic nature of customer expectations, which continue to evolve with advancements in technology and increased market competition. It suggests that organizations need to regularly evaluate their service quality standards and align them with changing customer needs. The findings also indicate that even minor improvements in service delivery, such as reducing response time and improving communication, can significantly enhance customer satisfaction levels. In this context, the study reinforces the idea that operational efficiency is not only about cost reduction but also about delivering consistent and high-quality customer experiences. These observations contribute to a better understanding of how service-oriented organizations can achieve sustainable growth. Furthermore, current data suggests that 86% of customers are willing to pay more for better service experiences, emphasizing the direct link between service quality and business performance. The study also highlights that improved service quality leads to enhanced operational efficiency by reducing delays and improving service delivery processes. Additionally, research shows that 88% of customers are more likely to repurchase after a positive service experience, while a significant number may switch brands after repeated poor experiences. Overall, the study concludes that maintaining high service quality is essential for improving customer satisfaction and achieving operational excellence. Organizations must adopt customer-centric strategies, invest in technology, and continuously improve their service processes to remain competitive and ensure long-term growth.