This systematic literature review aims to explore the interplay between Knowledge Management (KM) and Digital Transformation (DT), identifying current research gaps and reviewing the theoretical and practical implications. Research method adhered to the updated PRISMA guidelines – Scopus and Web of Science databases were used for literature sourcing, applying strict inclusion and exclusion criteria to ensure paper relevance and quality, which yielded 948 initial articles, later refined to 25 core studies. Results were synthesized through a short quantitative analysis and in-depth paper review, thematic categorization, highlighting the prevalence of literature reviews and the need for more empirical studies in the field. Notable findings include the three identified gaps – lack of cross disciplinary and case studies, absence of integrated frameworks, Insufficient focus on complex tools for technology adoption. All three of these gaps limit the research field, especially the potential impact in practice, and creation of integrated frameworks, that link all aspects of KM and DT, which are supported by technology, guide deliver new theoretical and practical value and make both the academia and businesses ready for transition to Industry 5.0.