The Trebevic mountain was a vantage point for Serb snipers and mortar positions during the 1,425 day siege of the Bosnian capital in 1992-6.
It is only in recent years that the minefields have been cleared.
The reopened cable car has now been named after a former guard, Ramo Biber, who was shot dead by Serbs in 1992 at the start of the war.
In 1984, the mountain was a Winter Olympic bobsleigh venue.
The 32 new gondolas run from the heart of Sarajevo to the top of the Trebevic mountain.
The cable car was not repaired after it was damaged during the war.
Restoring it cost $8 million (£5.68m), half of which was donated by an American doctor who is married to a Bosnian scientist.
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