A feasible solution to wireless spectrum scarcity is the deployment of femtocells along with already existing or new macrocells. This hybrid architecture not only helps to increase the system capacity but also improves the wireless signal quality for indoor users. Moreover, these femtocells can offer higher data rates to indoor users. In this paper, we analyze the performance of a finite capacity femtocell network. The transmission of data from Mcommunicating nodes to a FAP (Femtocell Access Point) is modelled as M/M/1/K queue. The access point in this case can hold a maximum of K-1packets in its buffer, hence the system represents a finite capacity network. The performance of the system is evaluated in term of QoS (Quality of Service) parameters such as packet blocking probability, average packet delay and utilization for different buffer sizes. The results reveal that with an increase in buffer size, the packet blocking probability decreases however at the cost of increased average delay