Abstract: Knowledge management has emerged important field that captured an attention of research scholar in the field of management as KM promulgated important source of competitive advantage. The basic purpose of the study is to explore conceptual linkage between knowledge management and organization’s strategy formulation and competitive advantage. Detailed literature is reviewed to find out conceptual linkage between knowledge management, strategy formulation and competitive advantage. We used resources based view approach to link strategy and competitive advantage as a lens. This research would be fruitful for managers to understand strategic importance of knowledge, knowledge management and knowledge strategy to attain sustainable competitive advantage.