Purpose-The purpose of this research study is to focus on the customer satisfactiontowards Islamic banking in Pakistan based on the different factors including servicequality, product quality offered by Islamic banks, customer care level of Islamic banks,financial benefits given to its customers, competition with conventional banks, religionand market reputation. Methodology- This study will help to understand the level ofsatisfaction of customers regarding Islamic Banks. In this study data was collectedwith the help of structured questionnaire having sample size 120 from different citiesof Pakistan. Different tests like T-test and Correlation were applied to check the effectsof different factors or variables mentioned above, on the customer satisfactionregarding Islamic banking system in Pakistan. Findings- From the statistical analysisby applying different tests, it is concluded that there is a positive relationship betweenfactors and customer satisfaction in Islamic banking in Pakistan, although there is lessawareness towards Islamic products but overall reputation of this sector is vested on itsinterest free factor which is prohibited in Islam. Moreover the trend of Islamic mode ofbanking is grooming due to the Islamic republic in Pakistan. Limitations- Limitationof this study is that data is collected from fewer numbers of respondents due to thediversification of population for banking services. People are more inclined towardsconventional banking, although these banks are providing Islamic banking servicesunder separate windows but still less awareness about Islamic banking is the mainproblem of users. Originality- This research study provides Islamic bankers with theidea of increasing their reputation by conducting different awareness campaignstowards Islamic banking and to bring diversification to be more innovative regardingtheir services in competition to conventional banks.