Penn Central, then in bankruptcy, sold the line to the state of Maryland in 1972 after Hurricane Agnes washed out the bridge over the Monocacy River.

The line remained dormant until 1980 when the Maryland Midland Railway began operations over the route between Walkersville north to Taneytown.

The State of Maryland awarded the company operation of the line south of Walkersville in 1993 and tourist trains began running to the Monocacy River in 1995.

Although crossing Maryland Route 26 was in the original plan to reach potential freight customers in downtown Frederick, the rise in automobile traffic over Route 26 and the departure of potential customers from Frederick led to the eventual abandonment of any further restoration plans into the city.

Current local government plans call for the old right-of-way south of Route 26 to be converted into a hiker-biker trail.

They also host some special events, including some on weekends and during the off-season such as a railfan trip with a visiting steam tank engine, or Santa trains during the Christmas season.

In 2012, the railroad operated steam excursions for the first time using the Gramling Locomotive Works "Flagg Coal 75" an 0-4-0T tank engine.

The Pullman solarium car, named the Meadow Lark,[7] was donated to the Chesapeake Railway Association[8] and later turned over to the WS, which continues to restore it.

The railroad has a small museum in the former Glade Valley Milling Company building across the street from the 1890s Walkersville Depot.