ABSTRACT The purpose of the study was to investigate service delivery and customer satisfaction on health clubs at Bahir Dar city. The data was collected through questionnaire; interview and observation method from the list of sampling frame, a total of 279 respondents participated as the source of data by using purposive sampling methods. The design of the study was convergent parallel mixed research design .The data collected were organized, analyzed and interpreted by using descriptive statics and used inferential statics like correlation, t-test and regression. The findings indicated that from the descriptive statistics analysis of services delivery, 57.7% of the respondents were poor perception towards services delivery but 42.3% were good perception towards services delivery in the health clubs. The t-test result shown that the satisfaction level of the respondents’ was negative i.e. (-0.81646), this implies that the customers are not satisfied for with services that provided by the health clubs. Related to correlation analysis a strong positive correlation was found between services delivery and customer satisfaction because their correlation was 0.65.The main finding indicates that service delivery of the health club influence the satisfaction level of customer. The multiple regression result indicated that services delivery and customer expectation has 42% affect on satisfaction of customers. The remained 58% of customer satisfaction was due to other variables. Hence, the result indicated that services delivery (β= 0.529 with p<0.05) has a positive and significant effect on customer satisfaction and it is accepted, but customer expectationhas a positive but not significant (β= 0.094 with p<0.05) effect on customer satisfaction. Hence, it is rejected. This implies that services delivery can significantly matter for customer satisfaction. Thus, it was recommended that there should be minimum standards for health clubs and set clear monitoring procedures by customers against the set standards, Sport expert, sport federation, trade and services quality evaluators should follow-up, control and evaluate, the services provided by the health club, Health clubs need to have skilled persons specially medical persons as one of the standards to ensure that the customers have been using the clubs as per their prescribed health recommendations by physicians, create enabling situations for health clubs by government to compete and share experiences among each other to improve their service quality and also to encourage customers utilization of such services. Key Words: Services delivery, customer satisfaction and health clubs