In competitive organizations, knowledge management is fundamentally considered support towards performance. Therefore, in the 21st century, leaders broadly implement knowledge into organizational settings to earn a competitive advantage. This paper mainly determines to explore the effect of knowledge management practices and leadership styles (transformational & transactional) on university teachers' performance. A quantitative descriptive research design was used with 260 teaching faculty members selected conveniently, presently working in Sargodha University, University of Lahore, NUST, and HITEC University. Three five-point Likert type instruments were used to collect data from a conveniently selected sample. The findings reflected that knowledge sharing was practiced by both transformational and transactional leaders. The regression analysis showed a significant effect of leadership styles (transformational & transactional) on university teacher performance. The findings also reflected the significant effect of knowledge management practices on university teacher performance. Moreover, the results of multiple regression showed that transformational leadership and knowledge management practices were more effective on university teacher performance while transactional leadership remained insignificant. The current study provides insights as to which leadership style is preferable for improving the performance of university teachers through knowledge practices. [Note: The issue number (159) shown on the PDF is incorrect. The correct citation for this article is v43 n1.]