KANA COMMUNICATIONS INC
424B3, 2000-08-24
BUSINESS SERVICES, NEC
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<PAGE>

Prospectus Supplement No. 1 Dated August 24, 2000
(To Prospectus Dated August 4, 2000)

                                                               Filed Pursuant to
                                                         Rule 424(b) (3) and (c)
                                                   Commission File No. 333-42522





                                3,010,486 SHARES

                                     [LOGO]

                            KANA COMMUNICATIONS, INC.

                                  COMMON STOCK

     This Prospectus Supplement No. 1 (the "Prospectus Supplement") supplements
our Prospectus dated August 4, 2000 (the "Prospectus") relating to the sale by
certain of our current stockholders, or by pledgees, donees, transferees,
assignees or other successors in interest that receive such shares as a gift,
partnership distribution or other non-sale related transfer (the "Selling
Stockholders"), of up to 3,010,486 shares of our common stock that were issued
in connection with our mergers with Business Evolution, Inc. and netDialog, Inc.
in December 1999.

     Any statement contained in the Prospectus shall be deemed to be modified or
superseded to the extent that information in this Prospectus Supplement modifies
or supersedes such statement. Any statement that is modified or superseded shall
not be deemed to constitute a part of the Prospectus except as modified or
superseded by this Prospectus Supplement.

     This Prospectus Supplement should be read in conjunction with, and may not
be delivered or utilized without, the Prospectus. This Prospectus Supplement is
qualified by reference to the Prospectus except to the extent that information
herein contained supersedes the information contained in the Prospectus.
Capitalized terms used in this Prospectus Supplement and not otherwise defined
herein have the meanings specified in the Prospectus.

                              SELLING STOCKHOLDERS

     The table captioned "Selling Stockholders" commencing on page 64 of the
Prospectus is hereby amended to reflect the addition of Footnote (3). Footnote
(3) below sets forth the transferees of one of our stockholders who were not
specifically identified in the

<PAGE>

Prospectus as Selling Stockholders. The Prospectus is hereby amended to include
these transferees, identified in Footnote (3), as Selling Stockholders.

<TABLE>
<CAPTION>
                                             Number of Shares of      Percent of Outstanding    Number of Shares of
                                                 Common Stock          Shares Beneficially          Common Stock
       Name of Selling Stockholder            Beneficially Owned              Owned             Registered for Sale
---------------------------------------  ---------------------------  ------------------------  -------------------
<S>                                                    <C>                        <C>                  <C>
Bay Partners SBIC, LP (2)(3).......                    298,474                    *                    298,474
----------------------------
</TABLE>
*      Less than one percent.
(2)    Former netDialog, Inc. stockholder.
(3)    In August 2000, the shares held by Bay Partners SBIC, LP were transferred
       and distributed to the U.S. Small Business Administration; Robert
       Anderson; Sally E. Anderson; the Eleanor R. Bailard Trust; The Gerson
       Bakar 1984 Trust; The Clumeck Family Trust; The Clumeck Family
       Partnership #1; The Clumeck Family Partnership #2; The Freidenrich Family
       Partnership; the Gallo Family Partnership; Isabella Partners; Daniel E.
       Koshland, Jr.; James M. Koshland; J.F. Shea Co., Inc. as Nominee 1995-4;
       the Timken Living Trust U/A/D 9/14/99; Freidenrich 2050 Ltd; Dempsey
       Family Limited Partnership; Marcella Yano; Robert Williams; James
       Wickett; and Bay Management Company 1995, GP.

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