Workforce diversity is a new asset for organizations which has been resulted from the increasing globalization. Workforce diversity presents different mental models to organizations; if managed well will produce new ideas, Knowledge creation and innovation. This article reports the findings of a research project which examines how workforce diversity’s management relates to the Knowledge creation process in higher education system. Data were collected from a questionnaire. Using stratified random sampling, 132 faculties were selected and asked to answer the questions. The findings indicate that workforce diversity has a positive impact on Knowledge creation in higher education system. Additionally, Knowledge creation can be enhanced by an effective management in these institutions.