The 21 century marks the age of knowledge-based economy. Education system has to reform in order to meet the need of knowledge-based economy society. This paper first explains the nature and characteristics of knowledge-based economy. Next, it discusses the impact of knowledge-based economy on education development, including the change of education goals and human cultivation. Then, it analyzes the new thoughts of education in the knowledge-based economy age: (1) to prompt the value of knowledge; and (2) to courage the ethos of creativity; (3) to congregate the strength of technology; (4) to cultivate the ability of life-long learning. Finally, it introduces 11 educational policies to knowledge-based economy age.