This study aims at identifying what is knowledge management and its role in improving the quality of graduates of higher education institutions. The theoretical part was addressed to what is knowledge management, its concept and development, its operations and its components, then the justifications for applying knowledge management in higher education institutions and their objectives and their impact on Quality of graduates. Through the applied part, the impact of the dimensions of knowledge management on improving the quality of graduates was studied in one of the higher education institutions in Algeria, University of Algiers 3. This is done by developing two hypotheses, discussing them and analyzing the results using spss.v20. This study derives its importance from the importance of investing higher education institutions in knowledge to achieve competitive progress and improve the quality of education. Higher education institutions are incubators of knowledge