The study uses the SERVQUAL construct to measure the expectations and perceptions of overseas students towards service quality of higher education institutions in Scotland. Structured questionnaire was distributed to 200 postgraduate and undergraduate overseas students from China and Taiwan studying at Glasgow, Strathclyde, Stirling, West of Scotland (UWS) and Glasgow Caledonian Universities. A set of 129 completed and usable questionnaires was used in the analysis and a number of advanced statistical techniques were employed. The findings revealed a perceptual gap between students’ expectations and their actual experience of the education services delivered to them by higher education institutions in Scotland. Detailed findings and managerial implications are discussed.