We reviewed 116 surveillance biopsies obtained approximately 1, 3, 6 and 12 months posttransplantation from 50 +XM live donor kidney transplant recipients to determine the frequency of subclinical cell‐mediated rejection (CMR) and antibody‐mediated rejection (AMR). Subclinical CMR was present in 39.7% of the biopsies at 1 month and >20% at all other time points. The presence of diffuse C4d on biopsies obtained at each time interval ranged from 20 to 30%. In every case, where histological and immunohistological findings were diagnostic for AMR, donor‐specific antibody was found in the blood, challenging the long‐held belief that low‐level antibody could evade detection due to absorption on the graft. Among clinical factors, only recipient age was associated with subclinical CMR. Clinical factors associated with subclinical AMR were recipient age, positive cytotoxic crossmatch prior to desensitization and two mismatches of HLA DR 51, 52 and 53 alleles. Surveillance biopsies during the first year post‐transplantation for these high‐risk patients uncover clinically occult processes and phenotypes, which without intervention diminish allograft survival and function. This retrospective case series of surveillance biopsies of 95 live donor clinically stable positive crossmatch kidney transplant recipients obtained during the first postoperative year demonstrates a > 20% frequency of subclinical cellular rejection and a 20–30% frequency of diffuse C4d+ at all time points.