This paper presents an empirical investigation to study the effect of knowledge management on job satisfaction in Iranian texture industry. The proposed study of this paper designs a questionnaire and distributes it among 219 out 230 employees who work for one Iranian texture firm in province of Markazi in Iran. The study uses structural equation modeling to examine different hypotheses based on the implementation of LISREL software package. The results of our investigation indicate that knowledge management positively influences on organizational improvement, organizational learning as well as quality improvement. The results of study also indicate that while there was a negative relationship between organizational improvement and job satisfaction, quality improvement and organizational learning positively influence on job satisfaction.