The objective of this paper is to provide a better understanding of the relationship between the microseismicity, active tectonics, and crustal structures in the southwest Yukon Territory, Canada, in order to improve seismic‐hazard assessments in this region. We utilize data from a new dense seismic array that was deployed in the southwest Yukon in the summer of 2010. Data from the new seismic array significantly improve the magnitude completeness level in the region from ML 3.0 to 1.0. We analyze 980 events ranging in magnitudes from ML 0.2 to 4.7, at depths from 0 to 35 km. Relocation analysis using the progressive multiple event location shows that seismicity is concentrated in four main areas: (1) Yakutat block northern boundary–Fairweather fault, (2) Duke River fault, (3) southern Denali fault, and (4) a previously unrecognized northeast trending cluster that may highlight a previously unknown active fault. This cluster may contribute to stress and strain transfer inland from the Yakutat block region.