A funicular railway is a cable railway system in which a cable attached to a pair of counterbalanced cars on rails moves them up and down a steep slope. The cars are often connected to each other by a rope or cable that passes over a pulley at the top of the slope. As one car ascends, the other descends. Funicular railways are commonly used in mountainous areas to transport passengers and goods between different levels of elevation. They are also used in some urban areas, such as San Francisco, California, to provide public transportation.

The first funicular railway was built in 1826 in Lyon, France. Since then, funicular railways have been built in many countries around the world. Some of the most famous funicular railways include the Pilatus Railway in Switzerland, which is the steepest funicular railway in the world, and the Peak Tram in Hong Kong, which offers stunning views of the city.