The main objective of the research was to analyse relationship between quality of services as measured by reliability, responsiveness, assurance, empathy, and conduciveness of materials on the one hand and passengers' satisfaction at bus terminals in Tanzania. This research focused on passengers at bus terminals who were thought to be forgotten in the sense that there exist low standard terminal services for them. Literature review focuses on key concepts, service quality and diverse service quality models including servqual, servperf, serviscape and servuction. A case study design was adopted, with a sample of one hundred and thirty one (131) respondents. Primary and secondary data collected were tested and found to be fit, reliable and valid for making meaningful interpretation. The research findings were based on all Total Score Value (TSV) results at Ubungo and Msamvu bus terminals which indicate unfavourable opinions and the association of all attributes were at 0.05 and 0.01 significant levels. The study came up with the conclusion that the understanding of quality management for vehicle operation has a significant influence on standard of service at the bus terminals.