The diesel department of the preserved line uses Lydney Junction as a base of operations.

To the west of this station, the freight-only line of the Severn and Wye Mineral Railway crossed the GWR line on its north–south route taking coal and iron from the Forest of Dean to the docks at Lydney.

The two stations worked closely together, particularly after 1894, when the Severn and Wye Railway was bought by the Great Western and the Midland.

These services ceased abruptly in October 1960[2] when the Severn Railway Bridge was damaged beyond economic repair in a shipping accident.

The down platform survived and forms the basis of the new Lydney Junction station on the heritage Dean Forest Railway.