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In the knowledge era, knowledge is considered as the most worthwhile asset of the organization. Hence Knowledge management (KM) has a vital role in sustaining competitive advantage and effectiveness of the organization. Successful implementation of KM in organization requires an appropriate context. The importance of human-social context makes transformational leadership as an effective facilitator of KM practices (knowledge creation and knowledge sharing). The primary purpose of the research is investigating the relationship between transformational leadership with KMpractices. The research method is descriptive and correlational. The population of the research consists of 232 person of managers and senior experts of administrative and commercial departments of the NIOPDC. A sample of 144 subjects was selected as statistical sampling. According to the research findings there are significant relationships between transformational leadership with KM practices. These findings support the necessity of adopting more humanistic leadership styles for implementing knowledge management more effectively.

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