The museum at the Ravenglass and Eskdale railway in the Lake District has been given almost £500,000 of funding.
The Heritage Lottery Fund grant will be used to restore and extend the museum at the Ravenglass station.
This includes building a new exhibition area and a space to display two steam engines from 1912-1915.
Peter Hensman from the Eskdale (Cumbria) Trust said: “This is magnificent support from the Heritage Lottery Fund. We shall now be able, with additional assistance from the Preservation Society, to complete our development project, preserving the heritage of the much-loved railway and opening up new opportunities for visitors, volunteers and the local community.”
Explaining the importance of the HLF support, Sarah Hilton said, “The museum extension will provide new insights into the rich history of the Ravenglass and Eskdale Railway, and its interaction with the lives of those living in the local area since its arrival in the Western Lake District. Its fascinating collections will now become more engaging and accessible, whilst new learning opportunities will enable the museum to attract a diverse range of visitors. HLF are pleased to support this worthwhile project thanks to money raised by National Lottery players.”