In new Millennium, we encourage with rapid changes in technologies and complexity of environment. In such situations, create sustainable competitive advantage, requires new type of organization that have the ability to create qualitative knowledge. Higher education institutes including agricultural faculties to meet challenges ahead, require knowledge creation and manage it. So, managers of agricultural faculties are expected better management and more effective organizational knowledge and integrated in organizational culture to promote agricultural faculties’ performance. In this regard, investigation of factors promoting knowledge management help to better manage it. The purpose of this study was implementation of contextual factors for enhancement of knowledge management in agricultural faculties. This research is done through a survey. The statistical population of the study consisted of all agricultural faculty members in agricultural colleges in Iran. The stratified random sampling technique was used, 350 faculty members comprising the sample size of the study. Research was administrated through a valid and reliable questionnaire. Content validity of questionnaire was ascertained by a panel of expert judgment and reliability determined through a pilot test and calculation of Cronbach’s alpha coefficient (0.91). Factor analysis was used as main statistical technique to analyze the data. The findings revealed that seven factors determined about 67.22 percent of variations of contextual factors for enhancement of knowledge management in agricultural faculties. The factors were knowledge– based organizational culture, flexible organizational structure, and professional development of knowledge workers, measurement, IT infrastructure, benchmarking and strategy. Hence, the following suggestions for improving knowledge management in agriculture faculties are: promoting participatory culture for knowledge sharing, professional development of knowledge workers as a key element in knowledge management systems and knowledge-based orientation in defining and developing the visions, goals and strategies of agricultural faculties.