The first tram in Budapest was pulled by horse and entered service on July 30, 1866. By 1885, there were 15 horse-drawn tram lines, but that was the peak of that network; the first electric tram was inaugurated on November 28, 1887. Between 1939 and 1944, Budapest had 66 tram lines. However, the tram network was significantly disrupted following the Siege of Budapest during World War II. Some lines were replaced by trolleybuses, but expansion of the tram network continued until the construction of Metro lines 2 and 3 in the 1970s.

As of 2014, the Budapest tram network is one of the largest in the world and very well utilized, it carries almost 100 million more passengers annually than the city's subway system. There are 33 lines in operation, most of which operate from about 5 AM to 11 PM each day. The fleet has over 600 vehicles stored at 9 depots located around the city. The Siemens Combino Supra trams that entered service are 177 feet long, making them among the longest trams in the world.