The current review paper provides an overview of the important factors affecting the level of Knowledge Management adoption in the medium enterprises of the auto ancillary industry. The current research study includes an in-depth review of the articles of empirical and conceptual nature besides case studies on Knowledge Management adoption in the auto ancillary medium enterprises sector. The key dimensions of Knowledge Management adoption such as storage and retention of knowledge, identification of knowledge, the utilization of knowledge, and technological, organizational, and environmental (TOE) factors have not been fully captured through research. With the importance of the medium enterprises role in the over-all development of the country, more research should be performed in this field. The medium enterprises should give due importance to the allocation of adequate financial resources and TOE factors, and the implementation of training programs, team building activities, reward systems, and knowledge sharing platforms for the effective adoption of Knowledge Management. © 2017 Serials Publications Pvt. Ltd.