Faculty satisfaction is considered an important factor of quality in online courses. A study was conducted to identify and confirm factors affecting the satisfaction of online faculty at a small research university, and to develop and validate an instrument that can be used to measure perceived faculty satisfaction in the context of the online learning environment. The online faculty satisfaction survey (OFSS) was developed and administered to all instructors who had taught an online course in fall 2007 or spring 2008 at a small research university in the USA. One hundred and two individuals completed the web-based questionnaire. Results confirm that three factors affect satisfaction of faculty in the online environment: student-related, instructor-related, and institution-related factors. (Contains 4 tables and 1 figure.)