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Smart and sustainable urban public transport is a considerable challenge for contemporary cities. Society's ever-increasing transport needs require the search for solutions to increase the attractiveness of public transport. In view of the above, the main objective of this article was to determine what effects can ensue from applying bi-directional trams in the context of the smart and sustainable city concept. To attain the said objective, the research process involved desk research as well as primary research using the Delphi method, a case study, and the participant observation method. The research area covered by the study was the city of Szczecin, Poland. The completed research made it possible to identify the limitations of tram systems and the effects of applying bi-directional trams in cities, as well as to develop some practical applications for the city in question. The research study showed that application of bi-directional trams may contribute to improved functionality of a tram system, which is particularly important from the perspective of the smart and sustainable city concept. The results of this research study have both theoretical and practical implications. [ABSTRACT FROM AUTHOR]