The first section was completed on 11 November 1895 from Švenčionėliai to Pastovai and extended in 1898 up to Panevėžys.

Panevėžys became a regional centre during Lithuania's independence (1920-1938), and thus a lot of raw materials such as coal, oil, sand, salt and fertilizer were transported as well as agricultural produce such as flax, bacon, sugar, grain, flour and timber.

[1] The German army built during World War I two Heeresfeldbahn track extensions in 1916 from Gubernija to Pasvalys and from Joniškis to Žeimelis with a gauge of 600 mm (1 ft 11+5⁄8 in).

With effect from 2006 tourist trains were run with ТУ2 diesel locomotives and these were well received with increasing passenger numbers.

The governmentally protected structures include the railway lines from Panevėžys to Biržai, from Panevėžys to Rubikiai and from Joniškėlis to Linkuva with a total length of 179 kilometres (111 mi) and an area of 1340 hectares, railway stations, production buildings and affiliated roads based on a proposal by Jonas Glemža, the Chairman of the Commission of Cultural Heritage of the Republic of Lithuania.