The general objective of the thesis was to measure the impact of new product innovation on customer satisfaction of Abyssinia bank. The study had tried to assess level of customer satisfaction in relation to customer centricity, attractive and innovativeness and price of the new product. The researcher used a qualitative type of research approach and a closed structured questionnaire was used to collect data based on the research questions. The study used both primary and secondary data. Primary data was collected with the aid of a self-administered semi-structured questionnaire. Secondary data was collected by use of desk search techniques from published reports, websites, news and other relevant documents. Sample size of the study was 385 and a convenience sampling technique was used. Descriptive statistics such as mean, standard deviation and frequency distribution were used to analyze the data. Descriptive (frequency, percentage, mean and standard deviation) and inferential statistic, analysis of variance (ANOVA) were employed. In addition, Pearson correlation analysis was used to assess relationship among the three dimensions of customer satisfaction. Data presentation was done by the use of percentages and frequency tables. The results indicated that the new product innovation to customers was to a great extent with majority disagreeing that product innovation affected customer satisfaction. It was found out that to command a higher market share; Abyssinia bank needed innovative ideas and technologies. As a key finding, the result depicted that those senior customers were not as such satisfied with new product innovation of the bank and generally, it is recommended that the bank should work hard and evaluate its performance so as to understand customers’ need and to get continuous competitive advantage in the banking industry. From the study findings, it can be concluded that product innovation impacts on customer satisfaction is less due to lack of understanding and accessing it as they like. The banks should be enabling customer’s access their bank accounts online. As concerns the level of satisfaction, it is determined by a banks range of products, and therefore the bank should maintain a wide range of products. Therefore, Abyssinia bank should aim at product innovation to enhance customer satisfaction.