This study examines the meditational role of job satisfaction in the effects of servant leadership on employees’ loyalty and organizational performance at the universities of Peshawar. Empirical support for such relationship was provided through a sample of 308 faculty members from 17 universities of Peshawar. UsingBarbuto and Wheeler (2006), questionnaire of servant leadership, job satisfaction questionnaire Minnesota satisfaction survey (MSQ), Weiss et al. (1967), employees’ loyalty survey questionnaire (Pandey & Khare, 2012), organizational performance questionnaire (Katou & Budhwar, 2010) and a demographic survey, the data was collected through survey. Evidence supported the reliability and validity of instruments.The results indicate that there is an affirmative direct influence of servant leadership on organizational performance and employees’ loyalty, but this relation becomes stronger when it assesses the indirect influence through job satisfaction as a mediator. Path analysis was used and found significant positive correlation between servant leadership, employees’ loyalty, and organizational performance; job satisfaction is found to play a partial mediating role between them. Theoretically, it contributes to the verification of job satisfaction as intervening variable between servant leadership, employees’ loyalty and organizational performance. The findings provide a course of action and important implication to assist management in understanding servant leadership and job satisfaction better. Therefore, to enhance organizational performance and employees’ loyalty, the leader of the university ought not just adopt servant leadership behavior yet in addition think about the satisfaction of the faculty. Further research on other variables such as changing servant leadership and job satisfaction dimensions and replication of the study in other setting is also recommended for further studies.