I already running HP Elite Laptop in a HP Docking station connected with Additional monitor. I need to enhance the setup by connecting my second laptop, such that I can control it from same keyboard, mouse while i have it's display in either in the monitor or my first laptop. I know KVM could be used to share input peripherals but not sure how everything connected via docking station.
You could set up a KVM between your keyboard, mouse, and monitor and the docking station and the other laptop. Basically, for purposes of setting up the KVM switch, you would pretend that the docking station is the computer itself (ignore that it's actually a dock). This would allow you to switch the external monitor, keyboard, and mouse between the two devices.
Note that you might want to look in to Synergy, this would allow you to control both computers very easily, but you wouldn't be able to switch the monitor between the two (Synergy just handles control, not video).
You need something like this: 2Port DVI KVM-Switch
Your Keyboard,Mouse and external Monitor is connected to the Base. From This base two cable loomes are lead through. One is connected to the Docking Station and the other to the second Notebook.
Please read the whitepapers carefully. The most know problem is, that you have to restart after a new setup. (I'm not really sure if this is necessary while using two hosts)