Advancements in computing systems, software, materials, management techniques, supply chain management, communications, outsourcing and concurrent engineering has changed the dynamics of shop-floor. The use of smart materials, advanced manufacturing processes and psychometric testing of highly skilled labor in a target focused, team environment has enhanced the performance expectations from Man, Machine and Resources. Global competitiveness demands that dissemination and absorption of knowledge by managers and workers need to be achieved through extraordinary effort. A number of working principles and guidelines have been developed and employed in industries for diffusion of knowledge from one level to another. Aircraft industry has also been a source of immense research in various areas of technology. The overall research in area of technology diffusion has added phenomenal knowledge to industry working practices. At this stage, its ia also major consideration in aircraft manufacturing industry. Whereas; the literature on diffusion of technologies in aircraft manufacturing environment is very limited. This paper reviews the techniques developed and adopted in other industries for technology diffusion. The same knowledge has is used to develop framework of technology diffusion in aircraft manufacturing environment. Later, the frame work was applied in a typical aircraft manufacturing industry to evaluate its validity, limitations. [ABSTRACT FROM AUTHOR]