This chapter explores the significant influence of knowledge management (KM) variables on digital transformation (DT) in the public sector, mostly in the changing e-Government era. Additionally, it aims to highlight the crucial role of e-communication in facilitating the successful implementation of these changes. Using a systematic literature review methodology, this chapter goes in-depth to evaluate the explored variables through a multi-pronged approach. The data sources span a wide range of scholarly literature comprising peer-reviewed journal articles, books, conference proceedings, and reports. Research shows that the correlation between knowledge management and e-communication is strong and that both have a positive effect on the digital transformation of the public sector. The study identifies effective KM capabilities, such as the creation, storage, transfer, and application of knowledge, as the main forces. This chapter expands the public administration theory through an integrated theoretical framework that vividly describes the complex nature of knowledge management variables.