Chaos engulfed Lisbon moments after the Gloria Funicular derailed as it sped downhill and overturned before smashing into a building.
At least 15 people have been killed and another 18 wounded, with five of them in a serious condition. A child is also among those injured.
The incident happened at around 6pm on Wednesday as one of the cables came loose along the railway’s route – one of the Portuguese capital’s most beloved attractions.
Footage of the aftermath of the disaster shows a mountain of dust rising from the wreckage of the yellow-and-white railway car.
People are seen racing towards the mangled mess in the hope to pull any survivors.
One witness can be heard yelling, ‘There are kids under the tram’, as the screams of children thought to be trapped beneath the rubble ring out.
Another woman shouts, ‘It just f*****g smashed,’ gesturing at the railway car crashed against a building.
Teresa d’Avó told Portuguese TV channel SIC: ‘It hit the building with brutal force and fell apart like a cardboard box.
She described the streetcar as out-of-control and said it looked like it had no brake.
Emergency workers worked to rescue people out of the wreckage into the late hours.
It was later confirmed that everyone who had been trapped after the crash has now been freed.
Portuguese authorities have not yet identified the victims or disclosed their nationalities, but said some foreign nationals were among the dead.
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