Construction commenced in 1883. The first section, Morwell – Boolarra, opened in April 1885 and the line to Mirboo North was officially opened on 7th January 1886, with intermediate stations at Hazelwood, Yinnar, Boolara and Darlimurla.
Steam trains, and later rail motors, served the farms, industries and communities along the line until improved road transport and the development of coal mining in the vicinity led to its closure on June 22, 1974.