The first phase of testing will allow engineers to monitor how the tram performs and prepare it for operations.
Testing will initially be carried out at night with the tram operating at low speeds. Daytime testing will start in the coming months.
Minister for Transport and Infrastructure Andrew Constance said the first tram test for the project was a milestone marking the next phase of the project.
“We know Sydney customers are going to be just as excited as us when the new trams start running from the CBD to Randwick and Kingsford,” Mr Constance said.
The 12-kilometre light rail route will start operating in early 2019. It will feature 19 stops, including Circular Quay along George Street to Central Station, through Surry Hills to Moore Park, then to Randwick and Kingsford via Alison Road and Anzac Parade.
During the 7am to 7pm peak period, services will operate every four minutes in each direction between the CBD and Moore Park and every eight minutes along the Randwick and Kingsford branch lines.