Sea transport is vital for Istanbul, as the city is practically surrounded by sea on all sides: the Sea of Marmara, the Golden Horn, the Bosphorus and the Black Sea. Many Istanbulites live on the Asian side of the city but work on the European side (or vice-versa) and the city's famous commuter ferries form the backbone of the daily transition between the two parts of the city – even more so than the two suspension bridges that span the Bosphorus. The commuter ferries, along with the high speed catamaran Seabus (Deniz Otobüsü), also form the main connection between the city and the Princes' Islands.

Trams first entered service in Istanbul on 3 September 1869, at the Tophane – Ortaköy line. In 1871 the Azapkapı – Galata; Aksaray – Yedikule; Aksaray – Topkapı; and Eminönü – Aksaray lines entered service. Other lines that entered service in the late 19th century included the Voyvoda Caddesi – Kabristan Sokağı – Tepebaşı – Taksim – Pangaltı – Şişli line; the Bayezid – Şehzadebaşı line; the Fatih – Edirnekapı – Galatasaray – Tünel line; and the Eminönü – Bahçekapı line. Since 1939 the trams of the city are operated by the İETT.

On 12 August 1961, the historic red trams of Istanbul were removed from the city's European side; and on 14 November 1966, they were removed from the city's Asian side. Towards the end of 1990, replicas of these historic red trams were put in service along the İstiklal Avenue between Taksim and Tünel, which is a single 1.6 km-long (1640 m) line. On 1 November 2003, another nostalgic tram line (T3) was reopened on the Anatolian part of Istanbul between Kadıköy and Moda. It has 10 stations on a 2.6 km long route. The trip takes 21 minutes.

Construction works of the Istanbul Metro (M2) began in 1992 and the first completed section between Taksim and 4. Levent entered service on 16 September 2000. This section of the line is 8.5 km (5.3 mi) long and has 6 stations. In 2000, there were 8 Alstom-built 4-car train sets in service, which ran every 5 minutes on average and transported 130,000 passengers daily. On 30 January 2009, the first train sets built by Eurotem entered service. Eurotem will build a total of 92 new wagons for the M2 line. As of 30 January 2009, a total of 34 train sets, each with 4 cars, were being used on the M2 line.

A northern extension from 4. Levent to Maslak was opened on 30 January 2009. The southern extension of the M2 line from Taksim to Yenikapı, across the Golden Horn on a bridge and underground through the historic peninsula, has thus far been completed up to the Şişhane station in Beyoğlu, which also entered service on 30 January 2009. At Yenikapı the M2 network will intersect with the extended light metro and suburban train lines, and with the Marmaray tunnel.

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