Recently, knowledge management becomes a core management tool for efficient and effective organizations. However, there are little known researches on measuring knowledge management level. The objective of this paper is to develop a process capability model for knowledge management of an organization. We developed 5 stage process capability model for knowledge management. The 1st stage is the initial stage where no significant knowledge management activity is performed. The 2nd stage is the performed stage where planning and tracking activities are performed on organization level. The 3rd stage is the established, and the 4th stage is the predictable stage where processes and results of knowledge management can be predictable. Final stage is the optimizing stage where knowledge management process is continuously improved at an organizational level. We surveyed 37 korean companies to test the validity of the proposed stage model. Statistical tests show that the developed stage model of knowledge management is valid and sound in general conditions. The result of this study on process capability model can be a solid stepping stone for future works in this area.