Knowledge management is frequently identified as an important antecedent of innovation andrnhas crucial roles in form performances. However, empirical studies specifically aimed atrnaddressing antecedents and consequences of knowledge management from business score cardrnperspectives in private banks of Ethiopia is hardily limited. Therefore, the very purpose of thisrnstudy was to establish the relationship between knowledge management and organizationalrnperformance of private banks in Ethiopia. The study targeted a population of 873 members (809rnemployees and 64 division mangers) of two private owned banks (Wegagen and Enat) inrnEthiopia. Simple random sampling was employed to select a sample of 274 members of which 21rnrespondents were division managers and 253 were employees at head offices. A pilot study wasrncarried out using 10% of sample size which accounts 28 respondents. The Cronbachâ€™s Alpharnvalue for all questionnaire components were greater than 0.7 indicating that the researchrninstrument was reliable. As part of data analysis from descriptive analysis mean and standardrndeviation were used to assess knowledge management practices and status of organizationalrnperformances of sampled firm and from inferential statistics person correlation was applied tornsee association between knowledge management practices and organizational performances,rnwhereas, multiple regression was employed to examine how much of the change inrnorganizational performance is due to the change in knowledge management practices.rnDescriptive results affirmed that knowledge management practices and organizationalrnperformances of the sampled firm was moderate which implied that the firms should stillrnexpected to more enhance their knowledge management practices so as to boost theirrnorganizational performance. Besides, multiple regression results showed that knowledgernacquisition with (Beta = 0.222), knowledge sharing with (Beta = 0.204), knowledge storage withrn(Beta = 0.156 and knowledge applications (Beta = 0.354) significantly predicted organizationalrnperformances (Customers satisfactions, learning and growth, finance and internal process).ThernR value (0.770) is an indication of high correlation between independent and dependentrnvariable, while, R2 value (0.593) obtained in this study demonstrated that 59.3% of the variationrnin organizational performance is due to change in the constructed knowledge managementrndimension in this study .Owing this, the study concludes that knowledge acquisition, sharing,rnstorage and application significantly predicts organizational performances of private ownedrnbanks in Ethiopia, therefore, private banks should give due attention to these knowledgernmanagement practices.rnKey terms: knowledge acquisition, knowledge sharing, knowledge storage, knowledgernapplication, organizational performance.