Unfortunately characteristics and benefits of light rail are frequently underestimated in decision making. On the bases of our own research and state of the art related research this paper addresses the importance of light rail as efficient means of transport, particularly efficient since light rail is synonym with reliable public transport. This paper elaborates light rail as prerequisite for urban (re)development and its economic, environmental and social assets. The benefits of light rail are explained and methods of incorporating them in decisionmaking are presented by using a series of cases. Finally this paper addresses reasons for failures of light rail projects as well as lessons to be drawn to overcome them.