The objective of this paper is to derive the analytical solution of the truncated single-channel Erlangian queue M/E j /1/N with balking and state-dependent service rate. The researcher deducesp n s , the probability of n units in the system (n = 1, 2, 3, [hellip], N) and the customer in service being in phase backwards, i.e. j is the first phase of service and 1 is the last (a customer leaving phase 1 actually leaves the system). p 0 is the probability of an empty system by using the iterative method. At the end of this paper some special cases are obtained.