The railroad was organized by a group of local citizens in 1884 to connect Stewartstown and its agricultural base with the Northern Central Railway's Harrisburg–Baltimore route at nearby New Freedom.

The 7.4-mile-long (11.9 km) route posed many obstacles, including steep grades and sharp curves, and took nearly a year to complete, opening in 1885.

The end of the steam locomotive era marked the introduction of a gasoline powered combination car that provided both passenger and express service.

[1]: 70 The railroad closed in 1972 after Hurricane Agnes destroyed parts of the former Northern Central line between Harrisburg and Baltimore, severing the Stewartstown's link with the national rail network.

During this time, the Stewartstown ran excursion trips and occasional freight service, connecting at York with what was then Conrail and the Maryland & Pennsylvania Railroad.

[3] The Bucks County Historical Society, a beneficiary of Hart's estate, demanded immediate payment while the railroad proposed a five-year repayment plan.

[4] In July 2011, the estate filed an Adverse Abandonment application with the Surface Transportation Board, which was granted in November 2012.