This is the first narrow gauge section railway station of Odisha.Founded by Rajah Saheb GCIE Gourachandra Gajapati Narayan Dev ,father of Maharajah Sri Krushna Chandra Gajapati Narayan Deo.
The Raja of Paralakhemundi decided to connect his capital with Naupada, which was only 40 km (25 mi) away.
With the then British Government giving sanction in 1898, work began in full earnest.
This motivated the Raja's Son the Great Maharaja Krushna Chandra Gajapati Narayan Dev to extend the line to Gunupur in two phases in 1929 and 1931.
After conversion to broad gauge the Gunpur-Paralakhemundi-Naupada rail line was opened to public and from 21 August 2011.