We present a transient queue size distribution for $M/G/m/N$ queue with state dependent arrival rates, using the diffusion process with piecewise constant diffusion parameters, with state space [0, N] and elementary return boundaries at x = 0 and x = N. The model considered here contains not only many basic model but the practical models such as as two-node cyclic queue, repairmen model and overload control in communication system with finite storage buffer. For the accuracy check, we compare the approximation results with the exact and simulation results.