This study aims at examining relationship of organizational culture and knowledge management with innovation of employees in offices of sports and the youth in Lorestan (a city of Iran). In this descriptive, correlational study, the population consisted of 100 organizational members in offices of sports and the youth in Lorestan in 2014. By using personal information questionnaire and three surveys including Organizational Culture Survey (Denison, 2000), Knowledge Management Survey (Lawson, 2003), and Innovation Evaluation Survey (Soltani, 2007), we gathered our data. Data analysis was done by Pearson's correlation coefficient and stepwise multiple regression(P≥ 0.05). Our findings demonstrated a significantly positive relationship between organizational culture (r=0.696), its components including involvement (r=0.700), consistency (r=0.638), adaptability (r=0.707), and mission (r=0.624) and innovation among employees of offices of sports and the youth in Lorestan. Additionally, knowledge management (r=0.471) and its components i.e. knowledge creation (r=0.286), knowledge absorption (r=0.392), knowledge organization (r=303), knowledge conservation (r=0.438), knowledge distribution (r=0.481), and knowledge application (r=0.511) were significantly and positively correlated with innovation ofthese employees
