Abstract. Customer loyalty is an essential part of business performance. Many companies hope to keep their
customers for a long time, even if possible forever. This study investigates the role of customer trust in mediating
the effect of customer satisfaction on customer loyalty in Islamic banks in the city of Yogyakarta. About 150
respondents were selected as the sample using the purposive sampling method. Structural Equation Modeling
(SEM) was used to test the hypothesis of this study. The results of the study indicate that customer satisfaction has
a direct effect on customer loyalty. Besides, customer satisfaction indirectly affects customer loyalty by mediating
customer trust. Thus, it can be said that customer trust successfully mediates customer satisfaction on customer
loyalty. This finding is consistent with the results of previous studies.