The issue of service delivery is becoming a global concern that demands continuous reform to fit the turbulent environment and changing customer needs. Efficient and effective services delivery is now a prominent agenda of most countries including Ethiopia. The demand for effective and efficient delivery of services requires fundamental change involving both institutional and cultural changes. Hence, measuring the level of satisfaction provides an indication of how successful organizations are at providing services, and is taken as effective outcome measure. Several researches have been conducted on the subject matter; however, most of them were focusing on private sectors such as insurance, hotel, bank and the like. Few are studied on public service organizations. Moreover, so far no study has been conducted that critically analyzes the state of customer satisfaction on service delivery of public service organizations in Dire Dawa Administration. The purpose of this study is therefore to assess customer satisfaction on service delivery of public service organizations in Dire Dawa Administration. To this effect, four research questions were employed to guide the study. These were: 1) what are the levels of customer satisfaction of public service organizations in Dire Dawa Administration? 2) What are the extents of the service delivery process in public service organizations (in terms of Assurance, Reliability, Tangibility, Empathy, and Responsiveness)? 3) What are the relationships between service delivery dimensions and customer satisfaction? 4) What are the major problems that exist in the service delivery process of public service organizations in Dire Dawa Administration? In addition, two data gathering techniques: systematic random sampling and purposive sampling were used to obtain relevant data required for the study. In the primary data gathering technique, questionnaire that were designed and distributed to customers and employees were used. For further elaboration, key informant interviews were conducted with selected officials from the sample organizations. Secondary data from different sources were employed. The data gathered from both primary and secondary sources were analyzed and presented using descriptive and statistical methods such as means, frequencies, percentages, tables and charts. The results of the study indicated that the five service delivery dimensions and customer satisfaction were positively correlated; the general level of customer satisfaction and the service delivery dimensions were moderate. The major challenges in service delivery such as lack of skilled and experienced leadership, inability to lead and make decisions strategically, inconsistent follow up and monitoring, absence of regular consultation with customers and stakeholders, prevalence of corruption and rent seeking activities and behavior, lack of motivation and service mentality, ineffective automation, absence of timely revision of rules and regulations; lack of cooperation and integration among stakeholders, inefficient and inappropriate grievance handling systems, mismatch between demand and supply in water, health and electric services, and absence of conducting customer satisfaction surveys scientifically were thoroughly identified. Finally, based on the analysis and conclusions, possible recommendations were suggested for alleviating the major challenges of service delivery processes in the study area. Key Terms : Customer Satisfaction, Service Delivery, Public Service Organizations. DOI : 10.7176/PPAR/10-7-02 Publication date :July 31st 2020