Plasma concentrations of A771726, the active moiety of leflunomide, have been suggested to be associated with antiviral efficacy and/or an increased risk of toxicity. A771726 is >99% bound to serum albumin, which can be relevant in kidney transplant recipients (KTRs) displaying impaired function, which leads to increased pharmacologically active free drug concentrations. This study investigated the relationship of total (t-) and free (f-) A771726 concentrations with clinical outcomes. The 20 KTRs displayed a median daily dose and time on leflunomide of 20 mg (range, 10–50) and 16.5 months (range, 2–28), respectively. A median of 6 (range, 1–15) trough concentrations were measured in each patient. All patients received steroids and a calcineurin inhibitor (CNI) as well as 4 of them, cidofovir. To evaluate therapeutic efficacy, we monitored viral loads in the urine and blood, serum creatinine, and kidney histology. To detect toxicity, we recorded blood and platelet counts, hematocrit, hemoglobin concentrations, liver enzymes (alanine aminotransferase [ALT], and aspartate aminotransferase [AST]), and skin diseases. The median t-A771726 concentration was 31.5 mg/L (interindividual range, 11.0–56.4); the median f-A771726 concentration and fraction were 55.8 μg/L and 0.19% (interindividual ranges, 27.9–148.4 μg/L and 0.12%–0.50%), respectively. A weak but significant inverse correlation was observed between the free drug fraction and both the glomerular filtration rate estimated by the Modification of Diet in Renal Disease formula (MDRD-GFR) (r = −0.202) and serum albumin (r = −0.358). Higher MDRD-GFRs were associated with greater t-A771726 concentrations. There were no significant associations between efficacy parameters and either the t- or f-A771726 concentration or between the t-A771726 concentration and toxicity parameters. In contrast, the f-A771726 concentration was significantly associated with leukopenia. These results indicated that f-A771726 concentrations may be more reliable than t-A771726 content to estimate the risk of leukopenia. Intensified elimination due to a higher free drug fraction and compromised absorption associated with a low GFR may have been responsible for the positive correlation between MDRD-GFR and t-A771726.