This railroad started as the Eagles Mere Railroad on July 1, 1892. A narrow-gauge operation, it offered passenger service to the many resorts at Eagles Mere, PA, from a connection with The Williamsport and North Branch Railroad at Sonestown.

In 1901, the EMRR contracted with the W&NB in order to haul timber out of the region around Eagles Mere along the W&NB to local mills and tanneries. Soon, the Susquehanna & Eagles Mere Railroad took over operation of the line as timber became more profitable. Originally ending at the town of Eagles Mere, the S&EM started building west, first to Hillsgrove, and then finally onto Masten and a connection with the Susquehanna and New York Railroad.

As lumber in the area diminished, so too did the traffic along the S&EM, until abandonment of the entire line came in two stages, first in 1922 and finally in 1930.