One important aspect that must be seen and proven is the effort and commitment of the higher education institutions to review regularly the quality of their services given to the students. It is high time to know the current status and level of service quality in different colleges/faculties/ schools of university of Gondar. The questions about the performance of service quality must be answered. According to some scholars, the strategic success of a service organization depends on its ability to consistently meet or exceed customer service expectations. The aim of this study was to examine perception of service quality, expectation of service quality and service gap from students' perspective using modified SERVQUAL instrument in the five colleges/faculties/ schools in the University of Gondar.It is important that colleges/faculties/ schools measure service quality and use the tools of continuous improvement. Therefore, the outcome of the study will be useful for the management and staffs of colleges/faculties/ schools in higher institutions to continuously improve the service quality. The results of the improvement effort finally will benefit the students as well.