The issue and goal of reasearching this work is to familiarize with knowledge management 2.0. which isn't so much reasearched in Croatia and using tools for knowledge management 2.0. in companies. Knowledge is not data nor information but still it can not be separately observed. Implicit and explicit knowledge are different. Knowledge is not only data set and information that can be stored in database but it also consists of values and feelings. Knowledge management 2.0 uses web 2.0 tools and other tools in order to achieve more effective goals of the organization and inorder to maintain continuous progress. Knowledge management 2.0 is based on Asian organization for productivity so therefore knowledge management has five different processes respectively categories of knowledge. These are identification, creation, storage, division and application of knowledge. For each of that process different tools are used. Some tools cover many different processes of knowledge, some are specialized for only single category.Tools for knowledge management can be classified in tools for social media (blog, forum, social networks, wiki), video tools (knowledge pill, video conference, webcast, webinar), collaboration tools (audio conference, chat, community of practice, mental tools) and in other tools (intranet, document management system, knowledge base, learning management system).Companies that used knowledge management 2.0 recognized progress in business.