Opening in December 1861 on the Somerset Central Railway, which was at that time worked by the Bristol and Exeter Railway, it was the only intermediate station on the short branch from Glastonbury to Wells (Priory Road) railway station, which had opened in 1859.

In 1950 unloading of wagons was effected by opening the side door and allowing this to rest on the adjacent fence.

[1] The siding and the adjacent level crossing were controlled from a small covered ground-frame.

Polsham was downgraded to a halt in 1938, with tickets being sold by the train guard.

Only a year before closure, six of the seven different types of ticket that were issued by the guard for travel from Polsham were still marked as being issued by the "Somerset & Dorset Joint Railway Committee",[1] an illustration of the poor usage of the line.