PurposeThe purpose of this paper is to clarify and extend the conceptualization and measurement of customer satisfaction in the Islamic banking sector in Iran.Design/methodology/approachThe authors perform a review of the set of attributes which are capable of being incorporated in the measure of customer satisfaction for Islamic banks. Later, the possibility is posed of grouping these attributes into dimensions of quality, proceeding to value various alternative structures by means of confirmatory factor analysis methodology and testing their reliability and validity.FindingsThe findings from this study reveal that service quality in Iranian banking adopting the commercial format of Islamic services has a two‐factor structure: Value proposition quality and Service delivery quality.Originality/valueThe paper contributes to the literature on Islamic Banking in a Middle Eastern economy.