Teachers and principals of Islamic private schools in rural areas have challenges in terms of adjusting to live in geographically remote areas, teachers turnover, increased administrative responsibilities and lack of facilities. The problems have made the schools inÂ are left behind state schools and their counterparts in the cities. This paper attempts to uncover the knowledge management practice that can be implemented at Islamic private schools in rural areasÂ to encounter the aforementioned problem as it is believed to enable organization to competitive advantage. This mainly focuses on what leaders must do to apply knowledge acquisition, knowledge retention and knowledge sharing. With knowledge management the problems related to knowledge lost can also be solved.