A 54 years old female who had end stage kidney failure due to diabetic nephropathy underwent live unrelated donor renal transplantation elsewhere in July 1999. Her comorbid conditions like hypertension and ischemic heart disease were adequately controlled. She presented to us in November 2000 with graft loss due to BKVN along with viruria and viremia. She was back on hemodialysis in February 2001. She underwent graft nephrectomy and subsequently live donor re- transplantation seven months later. She had induction with Simulect and maintenance immunosuppression with Prednisolone, MMF and Sirolimus. She continued to have BK viruria and viremia and a graft histology 8 months later showed features of BKVN. She was treated initially with 50% reduction in immunosuppressive drug doses and further reduction with close monitoring of serum creatinine. Even though she continued to have viruria, she maintained a stable normal renal function with much resolution of BKVN changes on a subsequent re-biopsy of allograft. Re-transplantation of kidney is a viable alternative in allograft rejected RTR on dialysis.