Traffic around the Fisherman's Walk tram stop in Fleetwood was backing up after a crash between a tram and car, police said.
The accident happened at around 12.15pm and involved a silver Audi A6, a force spokeswoman said. Nobody was injured, she added.
Blackpool Transport said the collision happened where the tram track crosses Elm Street, with the junction blocked after the crash.
Police said the road would have to be closed.
Trams were terminating at Thornton Gate as a result, it tweeted, while the number one and 14 bus services were also diverted.
Services were back to normal by 1.25pm, though delays continued.