Lisbon is quite an old-fashioned city in many respects, and still hangs onto some of its quirkier forms of transport, namely its trams and elevadores (mini funiculars).
The No.5 Tram is my favourite tram route, as well as being my transport to the city centre. This tram runs between Lapa in west and Graca in the east. The best bit, in my opinion is the run down from Estrela/Lapa, through Bairro Alto, Baixa, and past the Cathedral and up through Alfama. In summer, peak tourist season, the stretch between Baixa and Graca is incredibly busy and you often have to wait one or two trams before squeezing on. My advice is to walk one or two stops back up the line to get on in relative ease.
Ideally, the run should be done on one of the old wooden trams, which sadly are being phased out by swish shiny ones, as the ride is like a runaway boneshaking rollercoaster up and down Lisbon’s hills with the bell clanking aggressively at anything human or mechanical that looks like straying into its path. The zig-zag route past the Cathedral and castle is amazing, as the tram hurtles along narrow lanes almost touching the sides.
The most well known elevador is the Elevador de Santa Justa in Baixa, an anorexic wrought iron skeleton of a tower, with a lift that takes you up from Baixa to Chiado and the ruins of Carmo Cathedral. From the top there is a great view over Baixa.
My favourites are the less well-known elevadors. Away from the city centre these are working lifts, carrying heavily laden ladies, hunched under their shopping, and labouring old men. These routes are incredibly short, but the hills are also incredibly steep if you do decide to walk. Elevador da Bica cuts straight up the hill between Rua da Sao Paulo and Rua do Loreto. If you follow the No.5 Tram route heading west out of Chiado the top of the elevador is on your left not long after you start heading down Rua do Loreto This yellow and white mini funicular, climbing a very steep hill, is predominantly used by grumpy flat capped old men, and wizen old ladies laden with shopping from the Mercado da Ribeira. The bottom of Elevador Gloria is just north of the tourist office on Praca do Restadores. It is another mini funicular, rewarding you with great views over Lisbon from the viewpoint just up the hill from the top stop.
All elevadores use a standard bus/tram ticket, one ticket up one ticket down, which you can buy on board with the exception of Santa Justa which has a ticket office at both entrances. Exact change is more or less obligatory.