The Aboyne & Braemar Railway was set up in 1864 to continue the Deeside Railway to Braemar in upper Deeside. The Deeside Railway, which opened to Banchory in 1853 had been extended to Aboyne in 1859 by the Deeside Extention Railway. However, during discussions on the proposed bill it was decided that the railway would be constructed no further than Bridge of Gairn, a short distance to the west of Ballater. This was eventually revealed to be a result of the wishes of Queen Victoria, who at the time used nearby Balmoral Castle and bought the surrounding forests to ensure that the railway did not disturb her tranquil holiday home.

Upon inspection of the newly constructed railway in September 1866 concerns were raised about the condition of the track, bridges and fencing. These were quickly addressed and the line opened on 17th October 1866. The railway was operated by the Deeside Railway from the outset, which at that time was leased to the Great North of Scotland Railway and thus it was the latter company who actually provided the service. The line was not as great a success as the Deeside & Deeside Extention railways, and the Aboyne & Braemar was eventually merged with the Great North of Scotland Railway on 31 January 1876.