The microfinance sector in Uganda witnessed technological transformation as institutions increasingly adopted automated teller machine (ATM) banking services to enhance accessibility and convenience. UGAFODE Microfinance Limited Nansana Branch deployed ATM infrastructure to serve its growing customer base, recognizing that customer satisfaction remained critical for retention and competitive positioning in the evolving financial services landscape. The study employed a correlational research design to examine the relationship between ATM banking services and customer satisfaction. A sample of 120 respondents was selected from UGAFODE Nansana Branch's ATM users through simple random sampling. Data was collected using structured questionnaires measuring ATM service quality dimensions and customer satisfaction levels. Quantitative analysis was conducted using SPSS version 25, employing descriptive statistics, Pearson correlation analysis, and linear regression to establish relationships between variables. Reliability was tested using Cronbach's Alpha coefficient. The findings revealed a strong positive relationship between ATM banking services and customer satisfaction (r=0.768, p<0.01). ATM accessibility showed the strongest correlation with satisfaction (r=0.742, p<0.01), followed by transaction speed (r=0.689, p<0.01), system reliability (r=0.671, p<0.01), and security features (r=0.623, p<0.01). Regression analysis indicated that ATM service quality explained 59% of variance in customer satisfaction. However, 34% of respondents reported occasional service disruptions, and 28% expressed concerns about ATM network coverage. ATM banking services significantly enhanced customer satisfaction at UGAFODE Nansana Branch. Service accessibility, reliability, and efficiency emerged as critical determinants of satisfaction levels, while service disruptions and limited network coverage represented key challenges requiring institutional attention. UGAFODE should expand ATM network coverage, implement proactive maintenance protocols, enhance security infrastructure, integrate mobile banking linkages, and establish 24/7 customer support systems to maximize satisfaction and competitive advantage.