The Sarajevo Tramway, one of Europe's oldest, consists of one line. It is 10.7 kilometres (6.6 mi) long, being an east-west link from the city centre district (Baščaršija) to the suburb Ilidža. It has a 0.4 kilometres (0.25 mi)-long branch to the city's railway station (Željeznička Stanica).

The system is run by JKP GRAS Sarajevo, who also operate trolley bus and bus routes in the city.

Opened on New Years Day in 1885, Sarajevo tramway was the testing line for the tram in Vienna and the Austro-Hungarian Empire, and operated by horses. Originally built to 760mm narrow gauge (Bosnian gauge), the present system in 1960 was upgraded to standard gauge (1435 mm). The trams played a pivotal role in the growth of the city in the 20th century.

During the Siege of Sarajevo in the mid 1990s, trackwork and numerous vehicles were badly damaged - these are once again operational though marks remain on some vehicles.

The route lies on the main boulevard of Sarajevo, which is named (from west to east) first Bulevar Meše Selimovića (formerly 6 Proleterske Brigade), from Vila Čengić then Zmaj od Bosne (formerly Vojvode Radomira Putnika). From the district Marijin Dvor it runs a loop in a counter-clockwise direction along the Miljacska river on the street called Obala Kulina bana (formerly: Obala Vojvode Stepe Stepanovića). It proceeds to the terminus Baščaršija. The route then turns back toward Marin Dvor on the northern parallel road Maršala Tita.

Sarajevo (Cyrillic: Сарајево) (pronounced [sǎrajɛʋɔ]) is the capital and largest city of Bosnia and Herzegovina, with an estimated population of over 311,161 people within its administrative limits. It is also the capital of the Federation of Bosnia and Herzegovina entity, as well as the center of the Sarajevo Canton, which has a population of 438,757. Nestled within the greater Sarajevo valley of Bosnia, it is surrounded by the Dinaric Alps and situated along the Miljacka River in the heart of Southeastern Europe and the Balkans.

Sarajevo is the leading social and cultural center of Bosnia and Herzegovina, and its region-wide influence in politics, education, entertainment, media, fashion, science, and the arts contribute to its status as Bosnia and Herzegovina's major economic center.

The city is historically famous for its traditional cultural and religious diversity, with adherents of Islam, Orthodoxy, Catholicism and Judaism coexisting there for centuries. Due to this long and rich history of religious and cultural variety, Sarajevo is often called the "Jerusalem of Europe" or "Jerusalem of the Balkans". It was, until recently in the 20th century, the only major European city to have a mosque, cathedral, Orthodox church and synagogue within the same neighborhood.