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The railway was built by the North Eastern Railway in 1880, much later than most of the Durham coalfield railways. It was something of a plaything of the Londonderry family and served their residence at Wynyard Park. The 5th Marquis was able to hail trains at will as well as having a couple of private stations.

The route linked the Sunderland and Hartlepool Railway at Wellfield with Stockton through sparsely populated land and passenger services stopped in 1931 and the line was lifted in 1968. It is now used as the Castle Eden Walkway / Wynyard Woodland Park, as well as the National Cycle Network.

The railway never went to Castle Eden.