The aim of this paper is to investigate the role of managers with leadership potentials in knowledge management within organization. This aim is further developed through the research questions: (1) Does leadership have important role in knowledge management? (2) Under which conditions leadership influences knowledge management and what is the direction of this influence? (3) Which elements of the leadership, skills and virtues of the leader, are important and what roles do they have in knowledge management? The paper is based on the field investigation, employing interviews and survey as the research techniques, on the random sample of Serbian companies.