Knowledge management (KM) has evolved as a significant process for managing and exploitingrnorganizational knowledge. However, the literature relating to KM in Army context is limited. Thernsustainability of an organization relies on the effective use of the organizationâ€™s knowledgernassets and resources. Knowledge is a key asset in equipping defense personnel to accomplishrntheir mission. KM therefore has a major role in assisting Defense to achieve performancernexcellence. The purpose of this research is to evaluate the extent and effectiveness of KM andrnindentify factors that influence KM in Ethiopian Defense Force and to indicate possiblernrecommendations for the future implementation. To achieve expected output qualitative researchrnmethodology were used, and probability, random and purposive sampling were used because ofrnfitting of the army units geographical settlement. The research found that the extent andrneffectiveness of KM was very poor, providing significant and important opportunities forrnimproving KM practice in Ethiopian Defense Force. Lack of incentive mechanism, lack of properrnpolicy and procedures, non conducive organizational culture and structure, lack of resources,rnlack of leadership support, Army members attitude and not understanding the benefits of KM tornbring a sustainable change in the organization were identified as major influences on KMrnpractice in Ethiopian Defense Force .The research also identifies shortfalls in KM practice andrnoffers practical recommendations that should improve the accomplishment of the organizationalrnmission and which brings a continuous change by enhancing the appropriateness, consistency,rnquality and timely activities by empowering individuals and groups .rnKey Words: Knowledge, Knowledge Management, Knowledge Sharing, Leadership,rnOrganizational Change, Organizational Learning