Knowledge sharing creates opportunities to maximize the organization’s ability to meet those needs and generates solutions and efficiencies that provide a business with a competitive advantage. Knowledge sharing can be defined as a social interaction culture, involving the exchange of employees knowledge, experiences and skills through the whole department or organization. The concept of innovation has been closely related to “knowledge creation and knowledge sharing”. Innovation is a process where the knowledge is acquired, shared and assimilated with the aim of creating new knowledge, which embodies products and services. Through exchange tacit knowledge and explicit knowledge with others, the capacity of people increases to be involved in new situation and solve new problems. It further helps to build new solution for the next issues. So different kinds of knowledge sharing are necessary to create new knowledge and innovation. A descriptive–correlation survey approach was used in this study, and the questionnaires were filled in by the staff (n=96) in Refahe Kargaran Bank. In the 95% confidence level, the results of the study revealed that there is a positive. relationship between knowledge sharing and innovation. Also it was found that there is similar relationship between serial transfer and innovation. In addition, the same result were observed for near transfer, far transfer, strategic transfer and expert transfer with innovation. Finally, the research limitations and suggestions for further researches are presented.   Keywords: