Cities and towns around the world are becoming more condensed due to the shrinking amount of buildable areas, which significantly reduces the amount of light that occupants have access to. This lack of natural lighting results in health, safety and quality of life degradation. This paper presents a new technique of transmitting sunlight downward into narrow alleys and streets, by using a daylighting guiding acrylic panel that is capable of changing the direction and distribution of the incident light. The core of the proposed daylight guidance system is made up of light transmission panels with high quality. The corrugations have sine wave shaped cross-section so that the panel functions as an optical diffuser perpendicular to the direction of sunlight propagation. The day lighting system consists of the corrugated panels and a lattice frame, which supports the panel. The proposed system is to be mounted on the building roof facing the sun so as to redirect the incident sunlight downward into the narrow alleys or streets. Since building sizes and orientations are different the frame is arranged such that substantially deep light penetration and high luminance level can be achieved. Simulation results show that the proposed panel improves the illuminance values by more than 200% and 400% in autumn and winter, respectively, provides fan-out angle that exceeds 80° for certain solar altitudes and the transmitted power percentage varies from 40% to 90% as the solar altitude varies from 10° to 80°. Experimental results are in a good agreement with the simulations.