The growing importance of knowledge management (KM) as a strategic tool for fostering organizational innovation has driven the need for a comprehensive understanding of its impact on innovation. This review article addresses this need by synthesizing existing literature to explore the relationship between KM practices and innovation, aiming to provide actionable insights for improving organizational performance. Using a review-based methodology, this study systematically analyzed credible academic sources, including peer-reviewed journals and Google Scholar, to identify trends, challenges, and opportunities in leveraging KM for innovation. The findings reveal that KM significantly enhances an organization's ability to adapt to technological advancements and market changes by promoting collaboration, knowledge sharing, and the effective use of intellectual capital. Ten critical variables were identified, such as leadership support, technology infrastructure, and employee engagement, all of which play a vital role in bridging KM with innovation. Furthermore, the analysis highlights that organizations with robust KM frameworks are better positioned to drive sustainability and achieve long-term competitiveness. This paper is particularly valuable for organizational leaders, policymakers, and researchers seeking to implement or study KM strategies that support innovation. By offering a clear understanding of KM's role in innovation and its broader implications, this study provides a roadmap for creating knowledge-driven, innovative, and adaptive organizations in today’s dynamic business environment.