Situation awareness has emerged as an important concept in military and public security environments. Situation analysis is defined as a process, the examination of a situation, its elements, and their relations, to provide and maintain a product, i.e., a state of situation awareness for the decision maker(s). It is well established that information fusion, defined as the process of utilizing one or more information sources over time to assemble a representation of aspects of interest in an environment, is a key enabler to meeting the demanding requirements of situation analysis. However, although information fusion is important, developing and adopting a knowledge-centric view of situation analysis should provide a more holistic perspective of this process. This is based on the notion that awareness ultimately has to do with having knowledge of something. Moreover, not all of the situation elements and relationships of interest are directly observable. Those aspects of interest that cannot be observed must be inferred, i.e., derived as a conclusion from facts or premises, or by reasoning from evidence. This paper discusses aspects of knowledge, and how it can be acquired from experts, formally represented and stored in knowledge bases to be exploited by computer programs, and validated. Knowledge engineering is reviewed, with emphasis given to cognitive and ontological engineering. Facets of reasoning are discussed, along with inferencing methods that can be used in computer applications. Finally, combining elements of information fusion and knowledge-based systems, an overall approach and framework for the building of situation analysis support systems is presented.