This research is concerned with studying relationship between SHRM and achieving competitive advantage through knowledge processes as a mediator variable in banks operating in Jordan .a sample of 348 managers, assistant managers, heads of departments and their assistants in significant departments, which have direct relation with this study. Study results showed that there is a significant relationship between applying SHRM in banks operating in Jordan and achieving competitive advantage . In addition, the existence of a significant relationship between applying SHRM and knowledge processes. The existence of a significant relationship between practicing knowledge processes and achieving competitive advantage ,as well as the existence of a significant indirect relationship between applying SHRM in banks operating in Jordan in question and achieving competitive advantage through knowledge processes as a mediator variable