Kaposi’s sarcoma is one of the common malignancy after renal transplantation in some geographical regions. Withdrawl of immunosuppression leads to regression but predisposes to rejection and graft loss. We have studied the outcome of patients with Kaposi’s sarcoma at our center in whom immunosuppression was withdrawn. A total of 1000 renal transplant performed between 1985 and December 2001. Kaposi’s sarcoma (KS) developed in 9 of 1000 recipients (0.9%) which account for 36% of 25 malignancies developing during this period. All patients were male with a mean age at presentation was 31.9 ± 8.9 years. Mucocutaneous involvement was present in 7 of 9 patients (77%) with visceral evidence of KS was present in 5 of 9 patients (55%). All of sarcomas developed after one year of transplant. Azathioprine & cyclosporine was withdrawn after the diagnosis of tumor and patients were kept on low dose prednisolone only. Serum creatinine at the time of diagnosis of tumor was 1.87 ± 0.77 mg/dl. None of the patient had acute rejection episode after the withdrawal of immunosuppression. Two patients died due to aggressive pulmonary disease and one became dialysis dependent. Six patients had functioning graft with a mean creatinine 2.5 ± 1.7 mg/dl after a follow up period of 34 months (10-42 months) with no evidence of KS. Kaposi’s sarcoma is the 2nd most common malignancy after Non Hodgkin’s lymphoma in our transplant recipients. Reduction in immunosuppression leads to regression of KS in majority of our patients with relative preservation of graft function in medium term.