At the end of the 19th century the villages of Graal and Müritz (then two separate places) strove to become spa towns and seaside resorts.

During the planning, the following route sections were discussed: In the event the construction of the line was put off due to a lack of finance and the fear of unprofitability.

The Mecklenburgische Bäderbahn AG company was founded on 28 February 1925 with the aim of linking the Baltic Sea resorts of Graal and Müritz to the main line from Stralsund to Rostock.

The station at Graal-Müritz, which was so called even before the villages merged, was erected east of Graal and south of Müritz so that the option of continuing the line to Fischland remained open.

The 10.3 kilometre long, standard gauge line from Rövershagen to Graal-Müritz was officially opened on 1 July 1925.

In the 1970s, passenger traffic was limited for a number of years to the summer season; in winter buses ran instead of rail services.

At first, renovation of the line looked doubtful for a long time; only when the community of Graal-Müritz offered to bear a considerable portion of the cost, was work started.

As part of the renovation, the line was shortened to 9.7 miles, the station at Graal-Müritz was abandoned and replaced by a halt.

There are discussions about resurrecting the plans from 1925 and building a line to the Darss Railway (Darßbahn) from Graal-Müritz and Prerow.

These proposals have many supporters, especially given the high number of tourists every year and rising amounts of traffic on the Darß with its single connecting road.