It was originally designed for the transport of slate and copper ore from the mines near Coniston to the coast and later developed into a line for tourists to the Lake District.

In 1848, hoping for an increase in tourism, J. G. Marshall demolished his inn at the head of the lake and replaced it with a "handsome hotel".

[4] The Furness Railway had opened their line from Barrow-in-Furness to Kirkby-in-Furness in June 1846[5] and its extension to Broughton in February 1848.

[7] Also in 1849 the Furness Railway paid £550 (equivalent to £70,000 in 2023),[8] to improve the road from Ambleside to Broughton (now the A593).

John Robinson McClean, engineer of the Furness Railway, reported this to the Earl of Burlington (later to be Duke of Devonshire), the company's chairman, recommending that the line should be of standard gauge.

[10] Interest in the line revived in 1856, and the route was surveyed by George Sanders to plans drawn up by McClean and his assistant, Frank Stileman.

The line was initially run as a separate business, although it was closely associated with the Furness Railway, having the same chairman (the Duke of Devonshire) and general manager (James Ramsden).

[8][12] Tenders were invited and the contract for building the line was awarded to Child & Pickles.

[13] Work on building the line started in January 1858, but the contractors became bankrupt in August of that year.

[14] The line was opened on 18 June 1859 although the buildings at Coniston railway station were not completed until the end of the year.

[15] These buildings were designed by the Lancaster architect E. G. Paley in Swiss chalet style.

[23] Towards the end of the First World War workmen's trains ran between Coniston and the shipyards at Barrow.

This was made by the Liverpool firm of Jones, Quiggin and Company at a cost of £1,200 (£150,000 in 2023),[8] transported in sections by rail, and assembled on the slipway close to Coniston Hall.

[27] In 1900 alterations were made at a cost of £35 (£4,800 in 2023),[8] removing the smoking room and providing more accommodation for second-class passengers.

[31] For the purpose of economy, the railway developed a "steam rail motor car" which ran between 1905 and 1915.

[34] From 1934 motor trains were introduced, powered by L&YR Class 5 2-4-2T locomotives designed by Aspinall.

Freight services ended on 30 April 1962 and the track was lifted and the other railway structures were removed.

The station buildings at Torver, Woodland and Broughton, and two of the crossing cottages, were sold to be used as private houses.