Plans to link this railway with the Zwiesel–Grafenau line and hence to effect a connexion from Passau as far as Cham, were stymied when the latter was routed close to the town in accordance with the wishes of Grafenau townsfolk.

Due to the low axle load permitted on branch lines, Bavarian Lokalbahn locomotives were employed on the route.

For goods traffic, Bavarian BB II tank engines from Passau locomotive depot (Bahnbetriebswerk) were usually used.

From the beginning of the 1930s to the start of the Second World War, four-wheeled diesel railbuses of Classes 135 and 137 were also used, together with their respective trailer cars.

But from 3 February 1947 the tunnel was usable and from 29 April 1948, after repairs to the bridge, the entire route was open again.

With the establishment of the Iron Curtain a section of track on the Czech side of the border was removed on the Waldkirchen – Haidmühle line.

As a result, the importance of this section of route fell quickly, so that only shuttle services were left and all trains just ran from Passau to Freyung.

The termination of the transport contract by the Bundeswehr at Freyung spelt the end of goods services on the line.

In April 2005 the line was officially closed by the Federal Railway Office (Eisenbahnbundesamt or EBA).

One wanted to have a cycle path built on the trackbed, the other pressed for the reactivation of railway services.