The present research paper examines the relationship between digital transformation and customer satisfaction in Indian banks, with a specific focus on the mediating role of operational efficiency. The main objective is to understand whether digital transformation directly improves customer satisfaction and whether this effect is strengthened through improvements in internal banking processes. Based on this, two hypotheses were tested: first, that digital transformation has a significant positive impact on customer satisfaction, and second, that operational efficiency mediates this relationship. The research study adopts a quantitative and explanatory research design using primary data collected from 300 respondents across selected Indian banks. Digital transformation (DTI_avg) is treated as the independent variable, customer satisfaction (CS_Dependent) as the dependent variable, and operational efficiency (OE_Mediator) as the mediating variable. Statistical tools such as descriptive analysis, cross-tabulation, ANOVA, regression analysis, and mediation testing were applied to generate empirical evidence.The results indicate that digital transformation has a strong and statistically significant positive effect on customer satisfaction (B = 0.595, p < 0.001), explaining 26.5% of the variation in the dependent variable. Further analysis shows that digital transformation also significantly improves operational efficiency (B = 0.573, p < 0.001). When operational efficiency is included in the model, its effect on customer satisfaction is also positive and significant (B = 0.174, p < 0.001), while the direct effect of digital transformation decreases but remains significant (B = 0.496, p < 0.001). The Sobel test confirms a significant indirect effect (Z = 3.693, p < 0.001), indicating partial mediation. Final  findings observed that digital transformation not only directly enhances customer satisfaction but also improves it indirectly by strengthening operational efficiency. The study concludes that banks can achieve better customer outcomes when digital initiatives are effectively integrated with efficient operational practices. Overall, digital transformation, supported by operational improvements, plays a critical role in enhancing customer satisfaction in the banking sector..