Effective knowledge management is a powerful driver for product and organizational growth. Knowledge management allows for the efficient creation, sharing and use of information. But it is not entirely clear what basic knowledge is involved in agile practice and how teams handle it. The main aim of the article was the theoretical and empirical analysis of the agile knowledge management approach. The principles of knowledge management in connection with agile methodology were examined in the cognitive-theory section. The methodology is based on a case study applying an observational technique within an online organization. The empirical part presents a theoretical model that describes how knowledge management is used in the agile approach. These findings can aid in the understanding of agile knowledge management practices inside an online company, which includes iterative development, knowledge management and engineering practices. The results show that agile knowledge management improved in the organization’s proactive process management. The significant influence is observed on staff efficiency, economic growth, and hence on customer loyalty, which boosts corporate morale while reducing resource consumption.