In 1986, the tramway passed from the ownership of Blackpool Corporation to Blackpool Transport, as a result the Corporation coat of arms were replaced by a new logo.

Following the withdrawal of OMO 7 in 1987, the tram was sent to Mode Wheel Works to be converted into a replica of a Vanguard tram which used to operated in Blackpool until 1933.   A number of modern concessions were made such as the fitting of perspex sides and a railcoach tower and pantograph meaning that the tram didnt really look authentic.   Part of the reason for the withdrawal of OMO 7 at this time was the delivery and introduction of Centenaries 645 - 647.   647 was the last first generation tramcar to be built for a British tramway and it's body was built by East Lancashire Coachbuilders, hence its similar look to a number of buses in service across the UK .     

In 1989, Coronation Street were in town and the tramway was to feature heavily in an episode which saw 710 enter legendary status when it 'knocked down and killed' the baddie, Alan Bradley as he tried to chase Rita Fairclough across the prom.  

Also in 1989, Balloon 701 was withdrawn for an overhaul and refurbishment.   This overhaul would see a change to the shape of the upper deck ends with the distinctive curved corner windows on the ends being removed.   Also hopper windows were installed, encased lighting was installed on both decks, ex routemaster bus seats were installed on both decks and the tram was finished off in an attractive red and white livery similar to that carried by the Routemaster Buses used of the prom at that time.   This change to the shape of 701 would be repeated on a number of other Balloons over the following years, with 723, 711, 719 being outshopped in a similar style between 1992 and 1996, however, these trams would feature flourescent lighting, more powerful head lights and indicators.    713 and 720 would also receive this style of refurbishment in the 2000's.  

Early in the new year of 1990, Centenary 648 made its debut in service, following the removal of the GEC test equipment and fitting of the standard equipment for Centenary Cars and renumbering from its previous identity of 651.   1990 also saw the demise of overhead line car 753, when its diesel engine, used for travelling on the tramway when the power was switched off, caught fire whilst carrying out a job on the northern end of the line.   753 would lie derelict in the depot for 13 years before being donated to the LTT.   It was taken to the LTT Workshops in Brinwell Road for a restoration back to its previous life as Standard 143.   It will have open ends on the top deck and cab ends on completion and will represent a variation of the Blackpool Standard not seen in preservation to date. Standard 143 was originally converted into an overhead car in 1958 and was fitted with an inspection platform.   The tram was originally based at Bispham Depot before moving to Rigby Road in 1963, from here it operated until its fire in 1990.

Treated to an overhaul in 1990 were ex towing railcoaches 679 and 680, both received bus seats, hopper windows and heaters, however 680 required alot more work, including work to its underframe and framework.   In fact so much work was required that the tram could easily have been scrapped.   Luckily the work was sanctioned and 680 survived and is still in excellent condition to this day.   

1991 saw the end of trolley poles as the overhead  current collection method for the main fleet with only the illuminated fleet, vintage trams and boat cars retaining them.

1992 saw the arrival of Hong Kong built Double Deckers numbers 69 and 70.  69 and 70 were both destined for the Birkenhead Tramway that was under construction at the time.   Both trams saw use on specials and illuminations tours, however their main function was for driver training of the drivers who would be operating them at Birkenhead as Blackpool Transport operated the trams there for the first few years of its existance.   70 left first in 1994 for Birkenhead, with 69 following in 1995.

Also arriving in 1992 would be a newly buiIt engineering car, in the form of 754 built by East Lanacashire Coachbuilders to take over the duties of fire damaged engineering car 753.   754 also had a bus engine and an inspection gantry like 753 did. There was another overhead line car which was rebuilt from Marton 31 (also numbered 754) which saw use on the tramway for over 40 years until withdrawal and transfer to Beamish Museum and subsequent restoration back to 1901 condition as Marton 31 in the early 80's.   Also during the year, Boats 602 and 604 had their trolleys replaced with pantographs.   This did not last long however as when it rained and 602 and 604 were caught out in service, grease from the pantograph and dirt from the overhead line was being sprayed onto the passenger's clothes resulting in complaints and compensation claims!    Needless to say that the trolleys were restored to both trams for the 1993 season!

1993 saw the end of an era with the withdrawal from the final OMO cars from service.   OMO11 was the final car to see service, OMO 5 was also in use almost to the end as well.   Of the remaining OMO cars, OMO 1 and 12, which had been withdrawn in 1989 were scrapped in late 1993, OMO 8 was withdrawn in 1992 and stored, and would later become part of the heritage fleet.  OMO 10 became a cafe in a Conference Venue in Reading before being scrapped in 2005.   OMO 5 is currently stored at Clay Cross to be restored for the Crich Tramway Museum at a later date.   OMO 11 was used as a test tram for a new kind of truck that would later be used under Trampower tram 611.   11 was scrapped after the tests were complete.

By the mid 1990's the Overhead line, substations, support spans and poles were in need of replacement as they were life expired.    Over the Winters of 1994 and 1995, replacement of the overhead, support spans and poles took place in stages between Starr Gate and just north of Thornton Gate, whilst some of the aging Substations were also upgraded.

1995 was the 50th anniversary of both VE and VJ days, marking the end of the 2nd World War and in commemoration of this, Balloon 703 was repainted into Wartime livery and reverted to using a trolley pole.   The trolley pole didnt last long however before being swapped back for a pantograph.   The tram would retain this livery for 2 seasons before receiving 1980's livery.   Also in this year, Balloon 700 was withdrawn for overhaul, however, rather than receiving a bog standard overhaul, 700 would receive a heritage overhaul, emerging in 1997 in as built condition with a trolley pole and twin indicators refitted although much of the original interior was replaced with replica fittings.