The extension of the line from Yarra Glen to Healesville required a 1 in 40 (2.5%) climb into a 154.4 metre tunnel with a corresponding descent at nearly the same grade.

After 9 December 1980 no services operated beyond Coldstream and the Healesville-Coldstream section of the line was officially closed to all traffic on 10 March 1983.

During the Black Saturday bushfires of February 2009 Yarra Glen station came under ember attack and two timber trestle bridges near Tarrawarra were burnt down in a fast-moving grass fire.

The Yarra Valley Railway currently runs a railmotor service from Healesville station to a temporary terminus at the back of the Tarrawarra Estate Winery on Sundays and public holidays, crossing the Watts River, under the Donovans Road overbridge and through the historic tunnel.

After the line is restored to Yarra Glen, the Tarrawarra to Healesville Section will temporarily close to allow for extensive track maintenance.