The requirements and qualifications to build a narrow gauge railway from Cranzahl were met by 1884, but it wasn't until 6 April 1896, that construction started.

Until 1906, freight had to be transloaded in Cranzahl; since then transporter wagons made the extra cargo handling unnecessary.

In 1990 the railway lost its status as the most important carrier into Oberwiesenthal (which is the highest town in (Germany)), and in 1992 freight service was terminated.

The narrow gauge trains leave the station in a left turn and follow the right side of the Sehma valley through the village of Neudorf.

The tracks now lead downward into the Pöhlbach valley, crossing the Bundesstrasse 95, and run along the border with the Czech Republic uphill to the Hammerunterwiesenthal station.

After the next stop Unterwiesenthal, the track unwinds itself from the narrow valley, and the peaks of Fichtelberg on the right, and Klínovec on the left become visible.

The scenery is enhanced in the winter, when low temperatures increase the volume of steam from the locomotive, and snow-covered forests alternate with small Ore Mountains villages displaying their typical Christmas decoration.