Intellectual knowledge and capitals have become the principle type of resources in the organizations which detennine survival of the company and add to its competitive advantages. Therefore, having proper procedures and systems to control these assets and monitor their productivity and performance in organizations is a must. This paper has discussed the notion of knowledge management perfonnance evaluation (KMPE) and its necessity in the organizations. Then, some of the most common challenges faced by organizations in implementing KMPE have been highlighted. They mainly include failure to report performance data conectly or transparently, and lack of access to required performance data. Besides, the key requirements which should be met by organizations to resolve these issues and challenges have been introduced; for instance, regular intemal auditing of knowledge management perfonnance, raising awareness among personnel on the importance of KMP evaluation and its role in creating more job benefits and job security for them, having an incentive system in place, and so on. Finally, knowledge management performance auditing has been introduced as an effective process to monitor the performance of KM practices on a regular basis.