It is located in the Anerley area between the town centres of Crystal Palace and Penge, 8 miles 56 chains (14.0 km) from London Victoria.

It is one of two stations built to serve the site of the 1851 exhibition building, the Crystal Palace, when it was moved from Hyde Park to Sydenham Hill after 1851.

In 1856 the station was able to take through train services to Wandsworth via West Norwood and Streatham Hill, following the completion of the 746 yard (690 m) Crystal Palace Tunnel.

Although relatively short, the tunnel was regarded as a major engineering achievement as it was cut "through the same treacherous material [clay], through the hill on which the Crystal Palace stands, and immediately under one of the great water towers, a superincumbent weight of 2,200 tons which taxed in its execution all the skill and workmanship of the eminent contractors.

Originally the whole length of the platforms beyond the bottom of the massive staircases was covered by an elegant dual bow-spring arch iron roof.

He envisaged the construction of a tunnel which would run from Crystal Palace to Cricklewood in north-west London, with a branch line terminating at Strand.

Following the fire in 1936 which destroyed the Crystal Palace, passenger numbers fell and most services through the station were diverted to serve London-Croydon routes rather than running along the London Bridge-Victoria loop.

A glazed ticket hall, which echoed the profile of the Crystal Palace with its arched roof structure, was constructed at this time on the southern flank of the Victorian building.

A planning application was submitted to Bromley Council in February 2009, for alterations to the Victorian booking hall building, removal of the current ticket office, removal of the pedestrian bridge over platforms 1 and 2 and new stairs to platform 1, but funding constraints meant that this work had not started before East London line services started calling at the station in 2010.

[9] Transport for London were also proposing to extend Tramlink from Harrington Road through Anerley to the bus station on Crystal Palace Parade.