The optimal use of knowledge is undoubtedly one of the essential methods for the success of any company. Hence, the research aimed to understand the impact of knowledge management on innovation in manufacturing processes. A questionnaire was used for a group of workers in Iraqi industrial sector companies to learn about the effects. The results of the research revealed the existence of a relationship and a significant effect of knowledge management on innovation in manufacturing processes. Based on these results, it is clear that knowledge management has a role in enhancing the exchange of information and interaction between workers in industrial sector companies, which in turn contributes to improving productivity and achieving new manufacturing processes based on innovation, which requires industrial companies to rely on knowledge management to increase innovation and raise the competitive advantage.