With the development of information technology and popularization of web applications, students nowadays have grown used to skimming through information provided through the Internet. This reading habit led them to be incapable of analyzing or integrating information they have received. Hence, knowledge management and critical thinking (CT) have, in recent years, become important topics in higher education. However, there are many web applications that may serve as effective teaching and learning tools. This study therefore proposed a blended learning environment that incorporated useful web applications within a knowledge transformation model to create an educational environment capable of improving CT and knowledge transformation for student users. A semester-long experiment was then conducted to evaluate this learning environment. Results revealed that the proposed approach was effective in improving student CT and knowledge transformation. Students were also satisfied with the courses and teaching methods used by the proposed learning environment which also effectively improved their learning motivation.