In the 1920s, the Qingdao Municipal Government (QMG) planned to build a tramway system to replace some of the existing buses.

From 1938 to 1940, Kao Electric Co., Ltd. cooperated with the QMG and set up a "tram preparation office", planning to construct the tramway system together.

However, the project didn't succeed because of the lack of friction between tramway tracks and wheels due to the steep terrain in Qingdao.

In October, the vehicle field centre machine room axis shaft equipment debugging was completed, along with the line turnout control area joint test.

On 5 February, the public was allowed to ride the tram as part of a free trial experience without needing a ticket.

There are seven hybrid substations, double insulated elastic suspension mesh, the rated voltage is 750 V DC.

The modern tram routes completely run on reserved grass-bed track at middle of the road.