This paper reviewed the relationship among internal marketing, service quality and customer satisfaction, and the mediating effect of service quality. Based on the responses from 163 hotel employees and 489 customers who encountered them, the results of hierarchical regressional analysis showed that all internal marketing factors have positive relationships with service quality, and service quality has positive relationship with customer satisfaction. Also, service quality has mediating effect between four internal marketing factors(education, compensation, delegation of authority, and internal communication) and customer satisfaction.