We report the first observation of B(0)-->J/psieta decay. These results are obtained from a data sample that contains 449 x10(6) BB[over] pairs accumulated at the Upsilon(4S) resonance with the Belle detector at the KEKB asymmetric-energy e(+)e(-) collider. We observe a signal with a significance of 8.1 sigma and obtain a branching fraction of (9.5+/-1.7(stat)+/-0.8(syst)) x 10(-6).