In this paper, we present a new neural network based cache replacement algorithm called KORA (Khalid Obaidat Replacement Algorithm). The proposed algorithm uses neural network(s) as a kind of directory in order to identify and distinguish between active and inactive cache lines. Such a classification helps to guide the line replacement decisions. This allows our algorithm to provide better cache performance as compared to the conventional LRU (Least Recently Used), MRU (Most Recently Used), and FIFO (First In First Out) replacement policies (Khalid H, Obaidat MS. A novel cache memory controller: algorithm and simulation, Proceedings of the Summer Computer Simulation Conference (SCSC ’95), Canada, July, 1995. p. 767–772; Khalid H, Obaidat MS. Near-optimal cache replacement policy for high performance computer systems, revised version. IEEE Transactions On Computers, 1997 (submitted for publication); Khalid H, Obaidat MS. High performance cache memory replacement schemes. Proceedings of the 1995 IEEE International Conference on Electronics, Circuits, and Systems, December, 1995, p. 1–7). Extensive trace-driven simulations were performed for a wide variety of cache configurations using different SPEC92 (Standard Performance Evaluation Corporation) benchmark programs. Simulation results illustrate that KORA can provide substantial improvement in the miss ratio over the conventional algorithms. Our work opens a new dimension for research in the development of new and improved page replacement schemes for virtual memory systems and disk caches.