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The purpose of this study was to investigate the gap between library users' expected and perceived library services and to examine the role of library services in developing user satisfaction and loyalty. A quantitative research design using a questionnaire was used to investigate the research objectives. Undergraduate students were selected as the population from the Information Technology University. The questionnaire was adopted from previous literature. It was pilot tested with 50 undergraduate students and found reliable. Data was collected from 304 respondents and were analyzed using SPSS (v.20) software. The study found that library users expected a high level of service in three categories, i.e., Affect of Service, Information Control, and Library as a Place, as all mean scores were higher than 7 when rated against a scale from 1 to 9. The participants reported that they were likely to consult the library and recommend it to others. The structural equation model confirmed that better services will increase users' satisfaction with the library resources and services and will lead to winning users' loyalty. The findings from the study provided useful insight into the determinants of user satisfaction and loyalty and could be useful for other academic libraries seeking ways to increase user loyalty and user satisfaction with library resources and services. [ABSTRACT FROM AUTHOR]