The network opened on 12 May 1880: It was a horsecar system owned by the society Reymer & Masch, named Potsdamer Straßenbahn-Gesellschaft and consisted of a pair of lines. 1907 saw the introduction of electric trams which ran on a new line of 8km. In 1908 the network was composed by 4 lines (named from A to D) and in 1949 by 5 (named from 1 to 5).
In the 1980s, a pair of new routes were built: in 1984 through the new residential center in Babelsberg and in 1988 from Am Stern stop to the new south-eastern residential area in Drewitz. The Czech trams Tatra KT4 were introduced in 1993, and the modern Combino and Variotram in the 2000s.