We report a case in which a living donor kidney that contained a large benign cyst was successfully transplanted between a mother and her daughter. The donor, a 53-year-old woman, had good renal function, but her right kidney contained a large 4-cm cyst that had a benign appearance on computed tomography. At operation the cyst was proven to be benign by frozen-section histological examination and the transplant was performed. Both donor and recipient continue to enjoy satisfactory renal function 3 years after transplantation. A review of the literature regarding renal cysts and management strategies for use of cystic kidneys in transplantation are presented.