To mark the historic occasion celebrations will begin from 1.45pm on Monday August 1.
The event marks the departure of the first passengers to travel on the cliff railway when it first opened on August 1 1881, as well as Yorkshire Day in the national calendar.
David Birdsall will lead the celebrations with a special proclamation followed by local brass band, 5 Star Brass, playing an eclectic mix of tunes from the past 140 years.
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Amy Bartle, director of the company, said: “We are fortunate that Yorkshire Day happens to fall on the same day we first opened to passengers back in 1881.
"We are a great Yorkshire landmark so what better time to celebrate.
" We love to remind our visitors that Scarborough was the historic birthplace of passenger-carrying cliff railways in this country. It’s something we should be celebrating more.”
The free music event will run until 4pm outside the tramway upper station in Marine Parade.