Abstract: A tram operation benefits evaluation method based on simulation and modeling is proposed, and actual data from traffic survey is used to calibrate the model. The main points of simulation modeling, procedure and model utility are discussed. A multi-dimensional evaluation system is established and calculation methods of the corresponding indicators are proposed, considering benefit assessment of time-saving, energy-saving, environmental protection, transportation efficiency improvement and surrounding land value increment. The impact of tram on social traffic within the line influencing area is discussed. Quantitative measurement method of tram operation benefits is decided, taking Huai'an Tram Line 1 as an example to verify the feasibility of the method.