The study was an investigation of the effect of brand image benefit on customer satisfaction and loyalty in the case of commercial bank of Ethiopia Bahir Dar city selected branch. The study involved customers with in the selected branches. This is therefore survey and stratified sampling used to select a sample from the commercial bank of Ethiopia Bahir Dar district customer transaction report. Data was analyzed using descriptive and infernal statics with the aid of tactical package for social science (SPSS) version 24. Descriptive statics include frequency, percentage, mean, and standard deviation. Correlation facilitated drawing of the relationship between each of the independent and dependent variable. Hierarchal multiple regressions enabled to assess the effect of the independent variables on customer loyalty and the mediation effect of customer satisfaction on customer loyalty. From the study on gender, the majority were male. On age, the majority were between the ages of 25-35 years. On completed level education, majority of respondents hold a diploma. On marital status, majority respondents were married. On job status, majority of the respondent were worked on government employee. The researcher tries to find out the brand image influence on customer loyalty and the mediation role of customer satisfaction. The analysis shows that brand image benefit: functional benefit, expertional benefit, symbolic benefit and social benefit have positive effect on the customer satisfaction and loyalty. The result from hierarchal multiple regression analysis concludes that all brand image benefit tools that listed above have significance influence on customer loyalty without mediation (functional benefit 0.414,expertional benefit 0.084, symbolic benefit 0.196,social benefit 0.237, with mediation functional benefit 0.379,expertional benefit 0.084,symbolic benefit 0.118,social benefit 0.205,customer satisfaction 0.194).The result also indicates that customer satisfaction mediates the relationship between brand image benefit and customer loyalty.