The aim of this paper is to examine current trends inthe development of digital libraries (DL), with particular reference to Australia. This paper is the result of primitive study based on the visits made to university libraries in Canberra, Sydney and Melbourne. The objective of this paper is to analyzethe various aspects of Knowledge Organisation System (KOS) in Digital Libraries (DL) and its services. This study analyses the different projects towards the development of DL and its featuresin Australian universities.