It starts at the junction station of Herlasgrüner on the Leipzig–Hof railway and runs via Auerbach to Falkenstein.

The Herlasgrün-Oelsnitz line was opened in 1865 as part of the Voigtland State Railway (German: Voigtländischen Staatseisenbahn) from Herlasgrün to Cheb (then a mainly German speaking city called Eger in the Kingdom of Bohemia, which formed part of the Austrian Empire).

Because of the low traffic volume, it was decided in 1951 to dismantle the Lottengrün–Oelsnitz section in favour of so-called priority projects.

The remaining track from Falkenstein to the 24.6 km mark was still operated as a siding of the Wismut uranium mine.

In subsequent years, this track was used for the parking of damaged wagons bound for the Zwickau repair shop.