We report the observation of $Upsilon(2S)togammaeta_{b}(1S)$ decay based on analysis of the inclusive photon spectrum of $24.7$ fb$^{-1}$ of $e^+ e^-$ collisions at the $Upsilon(2S)$ center-of-mass energy collected with the Belle detector at the KEKB asymmetric-energy $e^+ e^-$ collider. We measure a branching fraction of $mathcal{B}(Upsilon(2S)togammaeta_{b}(1S))=(6.1^{+0.6+0.9}_{-0.7-0.6})times 10^{-4}$, and derive an $eta_{b}(1S)$ mass of $9394.8^{+2.7+4.5}_{-3.1-2.7}$ MeV/$c^{2}$, where the uncertainties are statistical and systematic, respectively. The significance of our measurement is greater than 7 standard deviations, constituting the first observation of this decay mode.