The railway was opened on 17 June 1892, after a two years construction period. The two designers, engineer Alexander Lindner and contractor Theo Bertschinger were supported by the mountain railway pioneer Roman Abt, who had responsibility for equipping the line with his newly developed Abt double lamella rack system.
The line connected at Brienz with the Brünig railway line, which had been opened in 1888 from Brienz eastwards towards Lucerne. However, the Brünig railway was not extended westward to Interlaken until 1916, so many early travelers to the Rothorn had to arrive by boat service on Lake Brienz.