Introduction: Physician communication is vital for an effective physician-patient relationship. Physician empathy is crucial to patient communication. The relationship between physician empathy, physician communication, and patient satisfaction is not very clear. This study Aims to study the mediating role of physician’s empathy between physician’s communication, physician’s empathy, and patient’s satisfaction. Methods: A cross-sectional study was conducted at the National Institute of Psychology, Quaid-i-Azam University during the time period of December 2018 to February 2019. Employing the technique of purposive convenience sampling, data was collected (N = 238) from psychiatric, cardiology and dermatology wards of public and private sector hospitals of Islamabad and Rawalpindi. The Communication Assessment Tool, specifically the Patient’s Perception of Physician’s Empathy and Patient Satisfaction Scale were used to assess study variables. The measures used in the research assess the Patient’s Perception of Physician’s Communication, Empathy and Patient’s Satisfaction. Formal permission for the research was taken from the hospital administration with the approval from the institutional review boards. Participants were briefed about the purpose of research. Both verbal and written informed consent was taken from them.  Results: Results shows that Physician’s Empathy plays mediating role between Physician’s Communication skills and Patient’s Satisfaction. Moreover, Pearson product moment correlation indicated a significant positive relationship between doctor’s communication skills, doctor’s empathy and patient satisfaction. Conclusions: Building a positive doctor-patient relationship would not only lead to improved patient satisfaction but also reduce the likelihood of medical malpractice. Therefore, steps should be taken to enforce the trust, interaction, and empathy in doctor-patient relationships, with patient-centered services. Physician’s empathy plays a mediating role between Physician’s Communication skills and Patient’s Satisfaction.