New onset diabetes (NODM) is a common and serious complication of kidney transplantation, and is associated with increased cardiovascular morbidity and mortality. Cardiovascular morbidity and mortality, in turn, are closely associated with arterial stiffening. We hypothesize that NODM may be associated with an increase in arterial stiffness in renal transplantation. We compared pulse wave velocity (PWV) and augmentation index in 318 renal transplant patients with (n = 57) and without NODM (n = 261). PWV was determined from pressure tracing over carotid and femoral arteries. Augmentation-index was derived by pulse-wave-analysis using radial applanation tonometry. PWV was significantly higher in transplant recipients with NODM (10.5 m/s) compared with transplant patients without NODM (8.7 m/s, P = 0.0002). There was no difference in augmentation index between patients with (27.7%) and without NODM (28.1%, P = 0.87). When analyzed by multiple regression analysis, PWV was only significantly correlated to age (P < 0.0001), NODM (P = 0.0325), and systolic blood pressure (P = 0.0081). NODM in renal transplant patients may accelerate arterial stiffening, thereby contributing to cardiovascular morbidity and mortality.