The station was built as the southern terminus of the Lancaster and Carlisle Railway after the initial planned route for the line - which would have followed the Lancaster Canal and crossing the River Lune from Ladies Walk to Skerton - was changed in favour of a cheaper route west of the city.

Platforms 5 and 6 (on the east side of the station) were electrified in 1908 to serve the now-closed Midland Railway route to Morecambe and Heysham.

The West Coast Main Line through Lancaster was electrified in 1974, and regular electric passenger services recommenced at the station 7 May 1974.

In 2023, upgrades to the platforms canopies were announced as part of a £9.5 million investment into the station, with work continuing into 2025.

[4] The main building constructed in 1846 by William Tite was situated on the west side of the line in Tudor Revival style using roughly squared sandstone rubble.

A new entrance was constructed in 1900 on the eastern side of the line at footbridge level; this is nearer the town and houses the remaining ticket office.

A full range of facilities is offered, including a newsagents whilst there is also a buffet, waiting rooms and toilets on both sides and lifts between the footbridge and platforms.

Two bay platforms to the north of this are used by terminating trains off the various branches to Heysham Port, Barrow-in-Furness and the Cumbria Coast Line, Morecambe, Windermere and Leeds.