The study aimed at service quality and customer loyalty in mobile telecommunication networks in Mbarara municipality and it was guided by the following objectives; To establish the relationship between service quality and customer loyalty, to establish the relationship between service quality and customer satisfaction and to establish the relationship between customer satisfaction and customer loyalty. The population constituted adults aged 18 years and above despite the fact that there were children below 18 years owning mobile phones. The findings confirm a positive and significant relationship between Service quality and customer loyalty (β= .669; p<05). A normal probability plot (normal Q-Q plot) was used in this study to plot the residual against the predicted scores. The correlation coefficient was found to be less than 0.90 implying limited threat of multicollinearity in the data. The telecommunication companies should promote service quality with in management and other shareholders as this is crucial in achieving customer loyalty. This can be achieved through being reliable and responsive to customer needs.