The main purpose of this research was to examine the relationship between knowledge management and creativity of university teachers. In this research quantitative research technique and correlational research design was used. The population included teachers from the universities of Lahore that were selected using stratified random sampling. Two close ended questionnaires: Knowledge Management Assessment Tool (KMAT) and Creativity Questionnaire were used to collect data from the respondents. The instruments were validated by using Cronbach's alpha coefficient. A total of 400 questionnaires were distributed, out of which 327 questionnaires were returned. Data were analyzed using descriptive statistics techniques (mean, standard deviation and percentage) and inferential statistics techniques (Pearson r, One-way ANOVA and independent sample t-test). The study shows that there is a positive and significant relationship between knowledge management and its dimensions include process, leadership, culture, technology and measurement with creativity at p = 0.01. Furthermore, no noteworthy variance was found among university teachers regarding knowledge management in terms of university type, nature of job, designation, teaching experience, qualification, gender and universities. Whereas, a significant variance was found in terms of age. In addition, it revealed that no noteworthy variance was found among university teachers regarding creativity in terms of nature of job, teaching experience, gender, university basis and age. However, a noteworthy variance was found in terms of university type, designation and qualification.