This study was conducted to find out the effective factors on customer satisfaction in FMCGs and understand the relation between customer satisfaction and customer loyalty in this industry. According to Palic, Maricic, and Kovac (2011) customer satisfaction is the strategic goal for each company. Companies which have satisfied customers gain more profit and they have more loyal customers. Hence, recognizing the factors that contribute to satisfy a consumer helps businesses to improve their performance and enhance customer satisfaction. The present quantitative research utilized questionnaire to quantify the effective factors on customer satisfaction in Tehran, Iran and defines whether satisfaction leads loyalty or not in FMCGs. The results yielded that product, distribution, after sale services, sale communication strategies have significant and positive impact on customer satisfaction in FMCGs. Sequentially following factors have greatest impact on customer satisfaction: 1- product, 2- distribution, 3- after sale services and 4- sale /communication strategies. Furthermore, these factors not only affect customer loyalty positively and indirectly by customer satisfaction, but also affect customer loyalty directly and positively. Moreover, there is a significant relation between customer satisfaction and customer loyalty in FMCGs in Iran. This study also found satisfaction of product is lower than distribution, after sale services and sale/ communication strategies. The satisfaction of distribution is greater than other factors.