It was proposed locally but supported by the larger Great North of Scotland Railway (GNoSR), which wanted to use it as an outlet towards Perth.
In common with many rural railways, it lost business heavily to competing road transport, both passenger and freight, from the 1930s.
In 1958 lightweight diesel railbuses were used on the line in an attempt to contain the fast-rising financial losses, but the novel form of vehicle failed to bring about the necessary profitability.
Colonel Yolland of the Board of Trade inspected the line, and approved it, while commenting that the curves and gradients required special care in operation; and that a quantity of second-hand rails should be changed without delay, as otherwise they "would set a precedent".
[7] The line opened for traffic on 1 July 1863 between Dufftown and Abernethy (later Nethy Bridge), with stations at Aberlour, Carron, Blacksboat, Ballindalloch, Advie, Dalvey, Cromdale and Grantown.
[8] On the same day the Morayshire Railway opened its extension across the River Spey from Dandaleith to Strathspey Junction, renamed Craigellachie on 1 June 1864.
The GNoSR was now physically linked to the Morayshire Railway, gaining an independent route to Elgin; it started to work the smaller company's traffic.
[7] After a delay, the line was extended to meet up with the Inverness and Perth Junction Railway at Boat of Garten on 1 August 1866.
When this extension was being proposed, the GNoSR had reservations, fearing that traffic heading south would run by the Aviemore route rather than via Aberdeen.
The Great North laid down a timber siding near Knockando, and two more at Nethy Bridge, one of which had a narrow gauge railway connecting it with the surrounding woods.
Four new request stops were opened on 15 June 1959; they were ground level platforms, and passengers had to negotiate retractable steps to board the train.
While the railbuses had a very modern feel to them, in those days there was a considerable volume of non-passenger business forwarded by passenger trains, including individual livestock, and these all had to be transferred to goods services, which were not always suitable.
[24] Goods trains continued for a further three years, mainly to carry coal to, and whisky from the distilleries in the Spey valley.
[25] The track was lifted the following year, except for the short section between Aberlour and Dufftown, which remained open for goods traffic until the end of 1971.
Many of the railway's attractive stone-built station buildings still exist today; some have been converted for private usage, while others are near derelict.
The former Grantown East Station has been completely renovated, reopening exactly fifty years after the last train passed through as the Highland Heritage & Cultural Centre.