Chartered on April 18, 1895, the Denison and Pacific Suburban Railway built 7 miles of track from a point on the Texas & Pacific Railway's Transcontinental Division northwards to Denison, TX. The connection with the T&P was later named Sherman Junction, and is located a couple of miles east of Sherman, TX. The D&PS itself was a subsidiary of the T&P, and provided passenger service from the T&P to Denison up until 1920. As for freight, the line shipped mainly grain and coal.

When the T&P established trackage rights on the Denison-Whitesboro line of the Missouri-Kansas-Texas Railroad, the D&PS line was considered redundant. Thus the T&P filed for abandonment of the entire line on April 2, 1965; abandonment was granted and the tracks were removed in September of 1966. Little of the former right-of-way exists today.