On 1 October 1895, the Werra-Railway Company, including this line, was acquired by the Prussian government and it was administered by the railway administration of the Deutsche Reichsbahn in Erfurt until 1945.

Two pairs of freight trains each day had been approved by the occupying powers for the transport of coke from Neustadt to Sonneberg, but traffic was small and irregular.

Some of the land had to be bought back as only a few years earlier part of the line had been sold to the Bavarian forest service.

On 28 September 1991 the 3.5 km long, former cross-border section from Neustadt to Sonneberg was returned to service, it was electrified from the first day.

When required, IntEgro Verkehr GmbH operates container trains from Monday to Fridays from Hof to Sonneberg Ost and return.