Cities play a fundamental role in the economic development of the country. The vast majority of jobs, innovations and services are concentrated in the cities, thereby determining the country’s economy. Currently, the Smart City is the key concept of sustainable urban development throughout the world. It covers a broad spectrum of issues related to effective, sustainable city management. Today, Kraków faces important challenges in the field of socio-economic and functional development. For years, the city’s authorities have been undertaking activities aimed at making Kraków a smart and modern metropolis, based on scientific potential, while maintaining the unique historical and cultural heritage. The aim of the present work is to analyse the effectiveness of implementing the Smart City concept in Kraków. To achieve that goal, the most important resources, challenges and development aspirations of Kraków have been examined. The strategic objectives set out in the Kraków Development Strategy and the degree of development of selected elements and systems of the city were also analysed. An important element of the work is a questionnaire-based survey carried out among the residents of Kraków. The results of the analyses do not fully confirm the effectiveness of the measures implemented. A city that aspires to become a strong European metropolis should improve solutions to its current development problems, the most important of which include air quality and transport nuisance.