Companies are called to cope with increasingly complex challenges. Among all, the reduced amount of resources available on our planet forecasts a dramatic future scenario. Circular Economy (CE) is one of the most promising strategies to manage resources efficiently. But also, the application of knowledge management in ensuring effective transition into a circular economy by developing a circular business model as an alternative to the conventional linear economic model is under-investigated. Knowledge coordination, creation, and dissemination capability of a firm are essential in developing the green industry. Furthermore, the knowledge creation, transmission, usage and sharing capabilities of a firm are critical to developing a sustainable sector. This article adopts a literature review approach to gain circular economy and knowledge management components and then shift to a lexical-analytical system that establishes the link between knowledge management and circular economy.