This article reviews the state of the art in balancing new lighting needs with their impacts and how a lighting masterplan can be embedded in a sustainable development strategy. Typically, it is only when cities are required by law to develop and implement a sustainability strategy that measures are taken to improve resource management. Research in recent years has shown that artificial night-time lighting, while providing countless benefits, can also have a negative impact on human health and the diurnal rhythm of animals and plants. Lighting consumes electricity, the production of which is associated with the emission of greenhouse gases and other pollutants. Artificial lighting has provided safety and comfort to users of public spaces at night and has also become a tool for enhancing the prestige of the city by illuminating important buildings and lighting installations. This paper identifies and reviews public lighting modernisation plans and their implementation in three European cities: Poznań, Warsaw and Copenhagen. The conclusions of the analyses can be used as a guideline for the creation of further lighting master plans in the spirit of sustainable urban development.