The research was conducted to examine the relationship between customer relationship management and customer satisfaction in PFSA Bahir Dar branch. The study conceptualizes and develops the dimensions of CRM (customer relationship management based technology, customer knowledge management, organizing around customer relationship management and key customer focus). To achieve the objectives this study, data was collected through questionnaire from a sample of 151 PFSA Bahir Dar branch customers. These respondents were selected using stratified random sampling method. The data collected through questionnaire and interview were analyzed using statistical tools such as mean, standard deviation, Pearson correlation analysis, regression analysis and subjective analysis respectively. The result of this study indicate that among the above four stated dimensions of customer relationship management practices customer relationship management based technology, customer knowledge management, organizing around customer relationship management and key customer focus have positive and significant relationship with customer satisfaction. Therefore, PFSA Bahir Dar branch has to establish better CRM Based technology, oversee its organizational structure and process to provide effective and efficient logistics services to the customers and improve the availability of vital and essential pharmaceuticals with their optimal quantity for gaining customer satisfaction.