The funicular with two cars has a single track with a passing loop and a tunnel (88 m) at upper end.

On request of the municipal council of Engelberg, the Swiss Federal Assembly granted a concession for the funicular on 8 March 1912.

In 1964, AC drive was replaced with a DC system leading to a performance increase from 140 to 250 hp.

During the reconstruction of the aerial cableway in 2015/2016, the funicular was again the only transport in direction of Trübsee.

The company Drahtseilbahn Engelberg-Gerschnialp AG was founded in 1911 to build and operate the funicular.