Knowledge Management (KM) has garnered significant attention from the business sector over the past few decades. At the same time, in light of environmental challenges, dynamic firms have broadened the scope of KM by integrating environmental considerations. Effective KM practices are expected to assist organizations in achieving green innovation and green transition. This study employs the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique to explore the direct and indirect relationships among knowledge management (KM), green innovation (GI), and green transition (GT) within Serbian enterprises. The study also evaluates the direct influence of human capital and strategy on KM. Conducted from 2024 to early 2025, the research includes a sample of 212 employees and managers from various hierarchical levels across Serbian manufacturing and service organizations. The findings reveal a positive direct influence of KM on both GI and GT. Additionally, there is a significant positive mediating effect of GI on the relationship between KM and GT. The findings suggest a positive correlation between human capital and KM, but a negative correlation between strategy and KM. This research paper demonstrates that implementing a knowledge management system effectively promotes green transitions in enterprises. It provides valuable insights for both enterprises and developing countries aiming to enhance environmental sustainability.