Area Studies is characterized by its cross-country, cross-linguistic, cross-cultural and cross-disciplinary knowledge production. Translation has long been regarded only as a tool for language transformation in Area Studies. Transknowletology theory defines the essence of translation as an action of knowledge reprocessing and discourse reconstructing. With the framework of Transknowletology, this research has made an observation on the relationship between translation and Area Studies from the dimensions of knowledge production and knowledge dissemination. It is found that translation and Area Studies are linked by knowledge, and are mutually-constructed and co-developed. Translation in Areas Studies functions in making knowledge reconstruction and knowledge dissemination in new contexts, and Areas Studies translation stimulates new translation practice field, translation knowledge domain as well as translation talents cultivation. With the fast development of Area Studies, it is certain that translation will play an increasingly important role in its knowledge production, knowledge flow, knowledge transfer, knowledge dialogue and knowledge innovation.