Abstract. Let Λ be a row-finite higher-rank graph with no sources. We identify a maximal commutative subalgebra M inside the Kumjian-Pask algebra KP R (Λ). We also prove a generalized Cuntz-Krieger uniqueness theorem for Kumjian-Pask algebras which says that a representation of KP R (Λ) is injective if and only if it is injective on M.