Knowledge Management (KM) is defined by World Health Organization (WHO) as “a set of principles, tools and practices that enable people to create knowledge, and to share, translate and apply what they know to create value and improve effectiveness”. This study critically reviewed KM applications in health sector with special attention to developing countries. It also appraised the prospect of its usage in the health sector. While KM applications are extensively been employed in business and other sector, its use in health sector has been limited. Its application in health sector of developing countries has also being very low and there was no literature sited on its use in developing countries.