All tram services from Blackpool to Cleveleys and Fleetwood have been cancelled until further notice.
Blackpool Transport confirmed the reduced services at 7.25am this morning (Friday, April 26).
The transport operator said all services will be terminating at Little Bispham after a tram broke down on the tracks.
A replacement bus service will take passengers from Little Bispham onwards to Fleetwood Ferry.
Blackpool Transport apologised to customers "for any inconvenience caused".
A spokesman said: "We're working to get things back to normal as soon as possible. In the meantime, we have a replacement bus running and Service 1 can be used as an alternative where possible.
"We are really sorry for any inconvenience caused."
Updates to follow...