This standard gauge, single tracked Lokalbahn ('local line') was 10 km long and was opened on 17 October 1902 by the Royal Bavarian State Railways.

The line started at Münchberg station, which was on Ludwig's South-North Railway between Hof and Neuenmarkt-Wirsberg, and ran at first in a southeasterly direction to the market community of Sparneck.

It then turned southwest and finally reached its terminus, the climatic health resort of Zell at 631 m above sea level on the northern edge of the Waldsteingebirge mountains.

With the improvement in economic circumstances after the Second World War passengers increasingly turned to buses and private cars.

Nevertheless, due to thriving tourist traffic, the line survived for a long time until both passenger and goods services were withdrawn on 25 September 1971.