Construction of the first phase, linking Edinburgh Airport with Newhaven, began in June 2008, but encountered substantial delays and cost overruns.

Following the council's approval for an extension of the line to Newhaven in March 2019, construction work commenced in November of that year, and was completed on schedule in June 2023, despite being delayed for three months by the coronavirus pandemic.

Towards the end of the 20th century, there was revived interest in trams in the United Kingdom and networks were reintroduced in Birmingham, Croydon, Manchester, Nottingham and Sheffield.

[23] Approval was given on 22 December 2007 for TIE to sign contracts with CAF to supply vehicles and BBS (a consortium of Bilfinger Berger and Siemens) to design and construct the network.

In April 2009, the council cancelled phase 1b, citing revenue shortfall created by the Great Recession to save an estimated £75 million.

[28] After the draft business case was accepted by the Scottish Government in March 2007,[29] initial construction work commenced in July 2007, with the diversion of underground utilities in preparation for track-laying in Leith.

The network is operated from a depot in Gogar, close to the A8 roundabout, immediately west of Edinburgh Gateway tram stop.

[35] Some on-street track was laid in a special foundation with cobbled road surfacing designed to be sympathetic with the style of Edinburgh streets but was removed in many places due to objections from cyclists.

[42][43] In February 2009, work on the Princes Street section stopped due to contractual disagreements between TIE and BSC after the latter submitted a request for an additional £80 million of funding.

In August 2009, TIE began legal proceedings against the BSC consortium over delays to the project,[48] and track-laying on Leith Walk, Shandwick Place and Haymarket was suspended.

With key project dependency out of synchronisation, TIE held discussions with Transport for London about delivering the trams to Croydon to conduct operational tests on the Tramlink network.

[53] The tests included recreating the steep gradients of Leith Walk, and using weights to simulate the heavy passenger load expected during a Murrayfield match day.

[65] A week later, after the Scottish Government threatened to withhold £72 million of funding,[66] the council reversed its decision, restoring the terminus at St Andrew Square.

[72][8] Delays in construction were criticised by businesses, who claimed their income was damaged by long-term road closures in the centre of the city, and also by some residents.

In response, TiE promised to carry out repairs and Edinburgh Trams agreed to fund special training for cyclists.

This was despite the fact that Edinburgh Trams is to be run by Lothian Buses, who are mandated to offer free travel to those with concession cards on all their bus routes.

[86] This revelation quickly caused city leaders to support an Edinburgh Evening News campaign to ensure that concessionary travel would be offered on the new tramway.

[95][96] In June 2014, shortly after the opening of the line, the then First Minister Alex Salmond announced a non-statutory public inquiry into the project's delays and cost overruns.

The report concluded that failings by Edinburgh Council, its arms-length companies and the Scottish Government were to blame for the delays,[99] with much of the criticism being directed against TIE.

[100] Edinburgh Council stated on 17 March 2014 that works would be conducted along Leith Walk to prepare it for a possible future extension of tram service.

[105] In March 2019, Edinburgh Council approved extending the system from York Place to Newhaven, with the line due to be operational by early 2023.

[114][115] In June 2024, the Trams to Newhaven project won an award from the Local Government Chronicle in its Future Places category, with the citation praising "[t]he deep collaboration between the council and private sector partners".

[116] During the early 2020s, plans were being prepared for a new line which would connect Granton in the north of the city with the Bioquarter in the south east, and possibly further onto either Dalkeith[117] or Queen Margaret University or Shawfair.

[118] At a meeting on 1 February 2024, City of Edinburgh Council voted to put the proposed north–south extension to public consultation; by this point, it had an estimated construction cost of £2bn.

The timetable is broadly the same every day of the week, except for a slightly reduced early morning frequency on Saturdays and Sundays.

[132][133] In April 2010, the first tram was delivered and displayed at the Princes Street stop at the bottom of The Mound,[134] before being moved to open storage in Broxburn.

Passengers with National Entitlement Cards eligible for concessionary travel but issued by other local authorities are not offered any fare concession, with the exception of blind or visually impaired cardholders.

An "onboard fare" of £10 is charged to passengers who have not pre-purchased a ticket or validated either a Ridacard, a National Entitlement Card or an m-ticket before boarding.

[120] In May and June 2015, cyclists were allowed to board the trams with their bikes, during a trial period which was supported by cycle campaign groups Spokes and Pedal on Parliament.

[162] A study published in 2018 found that, up to April 2016, 191 cyclists in Edinburgh had suffered tramway-related accidents serious enough to require hospital treatment.