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Using the four modes of knowledge conversion (socialization, internalization, combination, and externalization) from Nonaka and Takeuchi 's theory of knowledge as an interplay between tacit and explicit knowledge, and applying these to the four key ideas of TfU (generative topics, understanding goals, performance of understanding, and ongoing assessment), a new method of teaching and learning is born, KM-TfU method. This paper is aimed at using this new effective teaching-learning method which is a more knowledge-based method of TfU using the concept of ‘Learning-by-Doing Knowledge Management’ and applying this method in open and distance learning (ODL) in domestic universities. This new method which is based on critical and creative thinking, reflection, dialogue, interaction, brainstorming and knowledge creation, exploration, and expansion can effectively be applied in open and distance learning to create a more dynamic global knowledge-based society.