During the 19th century Southampton grew rapidly and by 1861 the population was more than 40,000 with most living in the suburbs of St Mary’s and Shirley.

Horse-drawn omnibuses provided a service from the suburbs into the Old Town. Nationally trams were a popular form of urban transport following the Tramways Act of 1870, and in 1872 a national company proposed to operate trams in Southampton.

Opposition meant that it was not until 1879 that horse-drawn trams were introduced by the Southampton Tramways Company who had a share issue of 5,000 shares at £10 each and on May 5, 1879, a horse-drawn tram service began, managed by William Lankester who had managed the floating bridge.

The 1870 Act provided for a local authority to purchase the tram network after 21 years if it resolved to do so. In 1896 the Southampton Corporation had purchased the Southampton Electric Light and Power Company which had spare generating capacity during the day so it made sense to electrify the tram network. The Corporation purchased the tram company, following legal arbitration, for £51,505. New track had to be laid to accommodate the electric trams and the first stretch was from Shirley to the Junction, followed later by Holyrood to the Stag Gates.

The horse-drawn trams continued until the new track was complete, with the last one withdrawn in August 1901. The horses were sold and many were used by the local cabs. One horse used by a local cabman needed careful handling because, should it hear a bell, it would set off at pace along the tram route.

The electric trams were a great success, producing a profit of £10,000 in 1902 and £20,000 in 1904 half of which was used to reduced the rates. By 1914 the profits exceeded £70,000. Bournemouth and Reading councils came to inspect the tramway, planning to set up their own networks.

Following an Act of 1902 the tram system was extended to encompass Swaythling, Bitterne and Millbrook among other destinations. The Bargate presented a problem in that trams passed though the archway every thirty seconds and presented a risk to passengers of injury or electrocution from the cable swung under the arch. This was resolved by reducing the wheel size, lowering the road and attaching a customised domed roof, making Southampton trams unique. By 1938 trams were able to pass around the sides of the Bargate.

During the Second World War many trams were damaged and for protection at night trams were parked in sidings off the Avenue under trees on the Common.

Wartime damage to track and trams meant that the decision was made to replace the trams with buses. Many were sold to Leeds Transport Department while others were scrapped. The last passenger tram journey was on December 31, 1949.

Most people were glad to see the back of the rickety old trams which had suffered from lack of investment. A petition was started to retain the trams but failed because of lack of support.