The purpose of this study was to examine the effect of knowledge management practices on organisational innovation, with a mediating role of intellectual capital. To achieve its purpose, the study employed explanatory cross-sectional survey research design. The targeted population of the study was all the academic staff of the Ethiopian Civil Service University, with a sample of 150 staff from which primary data was collected. Both descriptive and inferential statistics were used to analyse data through SPSS version 24, Smart PLS 3, and bootstrapping. PLS algorism was run to evaluate causal effects and bootstrapping was used to see the significance level of effects. Results revealed that knowledge acquisition, knowledge sharing, and knowledge application practices have an influence on both intellectual capital and organisational innovation. While knowledge acquisition has a statistically significant indirect effect on organisational innovation knowledge sharing and knowledge application have a significant direct effect. Intellectual capital also has a significant mediating effect on the relationship between knowledge management practices and organisational innovation.