Background: This paper aims at examining the effect ofpeople development management (PDM) on knowledge management cycle. Although PDM and KM have been studied several times separately; however, this research for the first time is testing the effects of PDM on KM. Objective: The paper investigates how people development management (PDM) may affect the performance of knowledge management (KM) in an organization. Method: Eight variables were identified on the basis of a well-known PDM model. These independent variables were tested against four dependent variables of KM, using the multiple regressionmethod. Findings: The findings are based on responses to a questionnaire. The results revealed that three of the independent variables have a linear relationship with the cycle of KM. Conclusion: In case of surveyed organization, through the dimension of people development, the most important factor for effective implementation of knowledge management cycle is learning needs analysis, followed by monitoring and then managing and allocating organization resources. However, other variables should not be ignored totally, as they are probably important for some other PDM departments.