It was built in the late 19th century (commencing in 1886) to connect the cities of Riga and Saint Petersburg via Valga and Pskov.

For several years there were no cross-border services, and trains terminated at Lugaži, but since 2008 a regular passenger service again operates from Riga to Valga in Estonia twice a day, with an onward connection to Tallinn via a train in Estonia.

During the COVID-19 pandemic, the Riga-Lugaži railway cut services to Valga, with trains ending in Lugaži.

[3] Starting from 15 December 2024, the passenger carrier "Vivi" will adjust the departure time of the Riga-Valga diesel train to the arrival time of the Lithuanian "LTG Link" diesel train Vilnius-Riga.

From 10 February 2025, the Latvian carrier "Vivi" will provide passenger transportation from Riga to Valga and back with a modern "PESA 730 ML" diesel train leased from the Lithuanian carrier "LTG Link", thus making transportation more comfortable for passengers on this section, as well as reducing the number of transfers, maintaining the transfer only in Valga.