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Kahne began racing open wheel sprint cars at Deming Speedway at 17 in Deming, Washington, before moving up to Skagit speedway in Alger, Washington, then he moved to USAC. In 2001 Kasey made a trip to Pennsylvania where he won the season opener at the historic Williams grove Speedway. He was hired by Steve Lewis, who had also employed future NASCAR drivers Jeff Gordon, Jason Leffler, Tony Stewart, and Kenny Irwin, Jr. In his first year on the circuit, he was named Rookie of the Year, as well winning the national midget championship. After that season, he continued to run USAC, as well as the Toyota Atlantic Series and the World of Outlaws.
Kasey Kahne made 20 starts in the Nationwide Series driving the #98 Channellock Ford Taurus for Robert Yates Racing. His best finish was a tenth-place finish at Cabela's 250. In 2003, he moved to the #38 Great Clips Ford for Akins Motorsports. He won his first pole at Michigan International Speedway and his first Nationwide race at the Ford 300. In 2004 he also made a pair of starts in the Craftsman Truck Series at Darlington Raceway and Homestead-Miami Speedway, driving the #2 Team ASE Racing Dodge Ram for Ultra Motorsports, winning both races.