MISGANU GETAHUN (PH D) This research project reports the findings of a study conducted on factors affecting the enhancement of E-banking service delivery with respect to the selected commercial bank of Ethiopian dire Dawa Based branches. The study analyzed factors affecting enhancement e banking service delivery within the context of CBE’s E-banking services using a combination of Technology Acceptance Model (TAM) and Technology- Organization – Environmental (TOE) with some modification to guide the research. The study followed sampling method and populations were taken from the CBE’s Dire Dawa based selected four branches namely Dire Dawa Branch,Sebian,Feres Megala,and City branches clerical staff and customers who are the service users using sampling method. The data was analyzed and tested using multiple regression and descriptive statistics to show the effects of perceived usefulness, perceived ease of use, perceived risk, organizational factors and environmental factors on the enhancement of E banking service delivery. The study includes both customer, who are E-bank users, and staffs of the banks who have technical knowledge and know-how on the system. Based on the statistical analysis, perceived usefulness was found to have significant effect on enhancement of E-banking service deliveries in selected branches. Moreover, perceived risk and environmental factors were found to have significant influence in enhancement of E-banking services. The study revealed areas of improvement with possible solutions that alleviate the identified major challenges, which includes continuous reviewing and advancement of the existing security system, prominence customer awareness creation has to be created, the government has to support banks especially on the environmental factors of ICT infrastructure. Additionally banks need to have an access to telecom data base interconnection with Ethio telecom. Furthermore, the study suggests that future researches may conduct on wide range of coverage including the district. Keywords: affecting, factors, Commercial bank of Ethiopia, Dire Dawa based branches, delivery, E-Banking service, Enhancement, service,