The aim of this paper is to present the basic charachteristics of smart cities and the way in which program management application can contribut to the process of smart cities development. Through theorethical background of smart cities concept the main factors that are nessesary for success of smart cities are being highlighted. On the other hand, through the presentation of program management it is stated in which way this managerial concept can contribute to smart cities development. The main conclusions of the paper are based on the analysis of projects and programs of the most developed smart cities in Europe. The research results of this paper presents the basics for further analysis, accompanying the evolutionary progress of this concept and the application of program management as a managerial concept relevant wich can contribute to smart cities development.