Abstract: How to select the target for knowledge merger and acquisition is elaborately analyzed. The real goal of the knowledge merger and acquisition is to obtain the embedded knowledge of the organization. First of all, the psychological mechanisms and the basic characteristics of the embedded knowledge are analyzed. Secondly, the problem on how to select the target for the knowledge merger and acquisition from the two aspects of the transfer of the embedded knowledge and the integration of the embedded knowledge is analyzed, and eight inferences are obtained to help out organization managers in decision-making.