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The birth of knowledge-based economies placed a great significance to effective knowledge management. Knowledge management is now a critical component for organizations in the 21st century in their effort to ensure sustainable organizational development. Organizations need to have strategies to create, adapt, and manage knowledge so as to maintain their innovation ability, consequently enhancing their sustainability. The purpose of the study was to examine the effect of Knowledge Management on innovativeness and sustainable organizational development. The study took a quantitative approach through a descriptive research design. The study population included selected corporate organization that had embraced knowledge management practices. The study used questionnaires and interview schedule to collect data from respondents. Data was analyzed through descriptive and inferential statistics. The findings showed that sustainable organizational development has a significant relationship with both innovativeness and knowledge management in the organization. Innovativeness was found to have a significant effect on sustainable organization development at 43.4%. However, when knowledge management was introduced in the model, the amount of sustainable organization development predicted improved to 68.1%. The study concluded that knowledge management, through knowledge creation, learning, simplifying knowledge and synergy, has a critical role in sustainable organizational development by enhancing innovativeness. This study recommends that organizations should implement effective knowledge management practices to support innovativeness and enable the organization create developments that not only fulfil the current needs but also ensure future needs are fulfilled.