Knowledge management is frequently identified as an important antecedent of innovation and has crucial roles in form performances. The study targeted a population of 332 members of Awash bank bahirdar district in bahirdar. Simple random sampling was employed to select a sample of 181 members of which 14 respondents were division managers and 167 were employees at Bahirdar district. The Cronbach’s Alpha value for all questionnaire components were greater than 0.7 indicating that the research instrument was accepted or reliable. As part of data analysis from descriptive analysis mean and standard deviation were used to assess knowledge management practices and status of organizational performances of sampled firm and from inferential statistics person correlation was applied to see association between knowledge management practices and organizational performances, whereas, multiple regression was employed to examine how much of the change in organizational performance is due to the change in knowledge management practices. Descriptive results affirmed that knowledge management practices and organizational performances of Awash bank was moderate which implied that the firms should still expected to more enhance their knowledge management practices so as to boost their organizational performance. Besides, multiple regression results showed that knowledge acquisition with (Beta = 0.222), knowledge sharing with (Beta = 0.204), knowledge storage with (Beta = 0.156 and knowledge applications (Beta = 0.354) significantly predicted organizational performances (profitability).The R value (0.770) is an indication of high correlation between independent and dependent variable, while, R 2 value (0.593) obtained in this study demonstrated that 59.3% of the variation in organizational performance is due to change in the constructed knowledge management dimension in this study .Owing this, the study concludes that knowledge acquisition, sharing, storage and application significantly predicts organizational performances of Awash bank in Bahirdar district, therefore, Awash bank should give due attention to these knowledge management practices.