Companies strive to be innovative, and maintain their leadership and market share. Therefore, they started to understand the value of employee knowledge as a valuable asset to construct new knowledge for new innovative products. Accordingly, the importance of knowledge management started to increase recently. This research aimed to assess the effect of knowledge management on the innovation capabilities in Egyptian telecommunication sector. For this purpose, a conceptual model was developed from literature and data collected using a structured questionnaire and distributed to a sample of the staff at the Egyptian telecommunication sector, and then analyzed using spss 26. The statistical analysis showed that the dimensions of knowledge management process positively affect the innovation capabilities' dimensions.