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This chapter's purpose is to review the modern smart cities and open research challenges and issues of explainable artificial intelligence (XAI). With the advent of XAI, people's lives have been improved, and the idea of smart urban has been created. Although the anticipated advantages, the adoption of AI differs between smart cities in part because of challenges and issues that can prevent the adoption of AI in smart cities. This chapter will explore the importance of XAI in smart cities and what is the current state of the art in various XAI applications in smart cities, the open challenges of XAI in smart cities, the research issue of XAI in smart cities, case studies and examples, and evaluations and analysis XAI models in smart city application. The open challenges will be covering developing and Novel XAI with ontologies, assurance in ML algorithms, scalability of XAI models in smart cities, etc.