Customers’ loyalty is considered as an important thing for firms in every industry. Firms consider the importance of customers’ loyalty regarding to the firms’ profitability. However, the reality in Indonesia, customers’ loyalty is proven to be declining. The purpose of this research is to discover the mediating impact of customer’s satisfaction towards the relationship of service quality effecting towards customer’s loyalty of Mandiri Bank in Yogyakarta. The respondents of this research are customers of Mandiri Bank including customers in fixed deposits, savings, and credits, living in Special District of Yogyakarta. Number of sample in this research is 315 respondents, by employing convinience sampling as sampling method. Method of analysis used in this research is Structural Equation Modelling (SEM) assisted with Lisrel 8.80 program. Findings in this research are: 1) service quality especially responsiveness and tangibles have positive and significant effect toward customer’s satisfaction, 2) customer’s satisfaction has positive and significant effect towards customer’s loyalty, and 3) customer’s satisfaction has partial mediating role towards the relationship of service quality effecting towards customer’s loyalty. This research is limited to Mandiri Bank in Yogyakarta as research object. Meanwhile, there are other regions in Indonesia which have different social, economic, and cultural background. Other limitation is the findings of this research considered to be general, despite the fact that customers’ of Mandiri Bank have various backgrounds in gender, age, occupation, income, and education. 
Keywords: 	Service Quality, Customer’s Satisfaction, Customer’s Loyalty, Mandiri Bank, Yogyakarta, Structural Equation Modelling, SEM