The purpose of the study is to examine the factors measuring customers' satisfaction, especially the impact of service quality on customers' satisfaction in public transportation industry in the university town of Sintok located in Kedah province of Malaysia. In order to assess the relationships between service quality and customer satisfaction survey http://www.scientificjournals.org/journals2007/articles/1003.htmdata were collected from 300 Bus commuters. All hypotheses were tested using Pearson correlations, controlling for the background variables of gender, marital status, ethnicity and education. The results indicate that hypotheses 1 through 5 were supported. Using multiple regressions as a basis for causal paths, a model was developed that examined the influence of all five dimensions of service quality on customers' satisfaction. The model explained 26.9% of the variance which indicates that 26.9% of the changes in the dependent variable are explained by the independent variables. Altogether, independent variables explained 26.9% of the variations.