This paper investigates the significance of knowledge management in an organization with a focus on utilizing knowledge to improve business processes and increase company efficiency. It emphasizes the importance of effective organization, maintenance and exchange of information between representatives and departments. Knowledge creation includes developing new information through research and innovation to maintain a competitive advantage. The appearance of fresh or new information and knowledge can overshadow older data emphasizing the importance of well-structured documentation and storage, i.e. organization of knowledge. Bad management of this area can make it difficult to access information. Knowledge transfer through team collaboration and sharing with effective communication are key to quality information dissemination. The use of ͏knowledge in making ͏decisions improves ͏ performance, i.e. working in teams and encourages innovation. Learning should be spontaneous with a focus on group ͏learning͏ and ͏structured thinking. Modern tools such as social networks and webinars help in effective knowledge management. Research in company X investigates how knowledge management practices affect agility to improve the strategy for optimizing the knowledge management process. Additionally, for the research, a survey was conducted, and 38 employees in company X were analyzed. The collected data were analyzed in MS Excel and I͏BM SPSS 27. According to the research, knowledge management significantly increases the agility of company X by speeding up the decision-making process and encouraging greater agility. Furthermore, flexibility within teams has a positive effect on agility, and employees express satisfaction with team communication and the level of cooperation, while they rate educational initiatives somewhat lower. Fast and efficient decision-making by the company together with the use of technological systems have been identified as key elements for increasing agility. Regression analysis confirms that each of these elements serves as an important indicator of company X's agility. The low variability in survey responses by employees indicates a strong consensus among participants. This may be a consequence of similarities between employees or perhaps a superficial opinion or thinking about this research topic, i.e. a lack of analytical thinking. Ultimately, the research results affirm that effective knowledge management supports quick decision-making, strengthens collective organizational knowledge, and encourages collaboration among teams. Empirical evidence shows that knowledge management plays a key role in improving Company X's agility by enabling faster ways of adaptation and innovation that are key to competitive advantage. With this research, it is advised to provide additional training for employees on methods for quality knowledge management and to continue investing in technological and digital infrastructure within company X.