The company was established in 1841 with the original goal of connecting the regional capital of Silesia with the foothills of the Sudety mountains which were rich with natural resources.

It sought to expand south to connect to the Austrian railways and north to the port of Świnoujście on the Baltic Sea to create a transport corridor between the Baltic and the Adriatic, however the northward expansion was blocked by the state which feared it will compete with the, by then nationalized, Lower Silesian-Mark Railway on the route to Berlin.

In 1884 the company was nationalized and dissolved shortly afterwards in 1886 with its lines transferred to the Wrocław directorate of the Prussian state railways.

In 1945 soviets dismantled the second track a supposed war reparations despite the line belonging to Poland, however PKP gradually restored it in the 1970s.

For technical reasons trains were not allowed to handle passengers due to the position of the Overhead Wire masts on the platforms.