Sarcoidosis is a systemic inflammatory disease characterized by noncaseating granulomas. It affects multisystem, commonly lung, liver, skin and eyes. Sarcoidosis and associated renal failure in a kidney transplant is extremely rare. We report a 51-year-old woman with a kidney transplant who persisted with renal and subcutaneous sarcoidosis. She was followed by out-patient clinic of nephrology department for ESRD which developed due to diabetic nephropathy. She was receiving cyclosporine and mycophenolate sodium for immunosuppressants. She complained a palpable mass in right inguinal area which turned out to be noncaseating granulomas in skin excisional biopsy. At the same time, her renal function was gradually worsening. She underwent a transplant kidney biopsy. At the time of the procedure, laboratory tests showed a creatinine clearance of 10.51 ml/min, a serum level of creatinine of 4.3 mg/dl and blood urea nitrogen of 57.8 mg/dl. Serum calcium level was within normal range, and anti neutrophil cytopasmic antibody was negative. The angiotensin converting enzyme level was elevated to 66 U/L. There was no evidence for sarcoidosis in chest X-ray. Granulomatous interstitial nephritis(GIN) was revealed in kidney biopsy, and AFB stain and PCR for tuberculosis in the renal tissue was negative. The cultures for urine AFB were also negative. Accordingly, the possibility of sarcoidosis was raised and the patient was started on oral prednisolone. She had good response with a decrease in serum creatinine level to 2.2 mg/dl. Additionally, subcutaneous nodules gradually disappeared in response to steroid therapy, which suggests that subcutaneous granulomatous lesion should be sarcoidosis as well. This case showed that GIN due to renal sarcoidosis can be one of clinical manifestations of renal insufficiency in kidney transplants.