In recent year’s social media in all its aspects such as blogs, forums and online communities have gained unprecedented popularity, as they been embraced by millions of users worldwide and from various demographics. Likewise, numerous organizations utilize social media as means to relate and interact with their stakeholders on daily basis. More specifically, organizations that is innovative in their nature, are developing strategies and methods to harness insights form social media by encouraging contribution into their open innovation process. Hence, this paper will attempts to reveals the potentials of social media in open innovation and the relationship between them. However prior to examining this relationships, we will review social media concept along with the reasons that open innovation come to be so important for today’s organizations.