The station opened on 4 July 1866;[1] it was situated on the south side of the town by the road to Bovey Tracey.

The signal box was unusually built onto the side of the engine shed.

In 1929, the Great Western Railway, which now owned the line, opened the Manor House Hotel just outside Moretonhampstead.

Set in 193 acres (0.78 km2), it boasted a golf course and also attracted holidaymakers to visit Dartmoor.

After the last passenger train ran on 28 February 1959,[1][2] regular goods trains continued until 6 April 1964, although British Railways continued to use the station as a base for its road goods services until the end of the year.