The objective of this study is to examine the relationship of the physician technical skills with patient's satisfaction. This study was conducted at the Penang mainland general hospital under the Ministry of Health Malaysia. Data was collected using questionnaires to n=115 outpatients who attended the hospital clinics except for psychiatric clinic. The finding in this study has proven that there was a strong relationship between technical skills by physicians and patient's satisfaction. Physician technical skills are seen as key determinants to improve health services quality in Malaysia.