Mancherial railway station is located on the Grand Trunk line.

As part of the Station Redevelopment Project, Indian Railways has upgraded the Mancherial railway station with many passenger-friendly facilities.The general waiting hall, ladies' waiting hall, as well as the upper-class waiting hall present on the east side of the station have been modernized and widened as part of the redevelopment project.

A new 201.04 kilometres (124.92 mi) railway line has been approved by the Cabinet Committee on Economic Affairs between Balharshah and Kazipet on August 26, 2016.

[2] The new line is extremely useful from goods loading point of view with FCI at Jammikunta, Kesoram Cement at Raghavapuram, Thermal Power Stations and SCCL at Ramagundam in Telangana, and Cement Chandrapur in Maharashtra.

[2] This will facilitate both the passenger traffic and goods movement that include cement, coal and food.