Poverty, ignorance, and sickness constitute the main threats to development in the Less Developed Countries (LDCs). In spite of the efforts exerted to reduce poverty and inequality, poverty is still widespread in Sudan. This study aimed at examining from an empirical point of view, the roles of zakat and knowledge in reducing poverty in Sudan during the period (1990-2009), using data collected from the Central Bureau of Statistics (CBS) and Abdelmawla (2010). Two policy variables are incorporated in the empirical model namely, the percentage spent on poor out of total zakat funds and educational attainment (proxy for knowledge). By applying the Ordinary Least Squares (OLS) technique, the results obtained signify that zakat and educational attainment impact significantly at the 1% level on reducing poverty in Sudan. The study recommends increasing educational attainment rates and improving the quality of education, which requires among other things, increasing expenditure on education at all levels, beside the care for adult literacy classes. In addition to that, raising the percentage spent on the poor out of total zakat funds is highly recommended to reduce inequality in the distribution of income. Income support should particularly be used for the part of the population with special needs.