In March 1851, the 4½-mile section from Haltwhistle to Shaft Hill (which was later renamed Coanwood) was opened to goods traffic, with passenger services commencing in July 1851.

Construction of the branch line was completed in November 1852, following the opening of the Lambley Viaduct (now Grade II* listed[3]) over the River South Tyne.

The Grade II* listed stone structure,[3] which spans a length of 850 feet (260 m) over the River South Tyne, remains a prominent landmark.

Gilderdale served as another purpose-built intermediate station for the South Tynedale Railway from December 1986, closing when the line was extended to Kirkhaugh in September 1999.

A German-built Waggon und Maschinenbau railbus was unsuccessfully trialled on the line in 1965, which proved to be unreliable, as well as being unable to haul parcel vans.

Although mentioned in the ‘Reshaping of British Railways’, also known as the Beeching plan, the line was in fact already being considered for closure by the time this was published in 1963.

Following improvements to the road network, including a temporary level crossing over the branch at Lambley, the line was closed on 3 May 1976 by the British Railways Board, with the last train working two days earlier.

The line was opened in stages, reaching Gilderdale in December 1986, Kirkhaugh in September 1999, Lintley Halt in April 2012,[11][12] and Slaggyford in June 2018.

The South Tynedale Railway regularly runs a steam service, using a pair of German-built Henschel engines, named Helen Kathryn and Thomas Edmondson.