Banchory Station was opened in 1853 as the terminus of the Deeside Railway from Aberdeen, and remained the terminus of the branch until completion of the Abyone extention in 1859. The original station was located some distance from the town centre and in 1902 the station was rebuilt a short distance to the west of the original. However, this was still inconvenient for some of the town residents and in 1961 British Railways opened a small halt at Dee Street, a short distance west of the main station but much better placed to serve the town.
Both these stations closed in 1966.

After closure the 1902-built Banchory Station remained derelict for a number of years before being demolished, the site being used for a housing development and for the local Fire Station. The only trace of the former station is a bridge which carries a road (which presumably once led to Banchory Goods Yard) across the vacant formation. To the west of Banchory Station the embankments which once carried the railway through King George V Park have been removed, as has any trace of Banchory Dee Street Halt.
However, the 1853 built Banchory Locomotive Works (which ceased to be used as such after the Deeside Railway was leased by the GNSR) survives, having been used by the council. The GNSR-built retaining wall intended to protect the railway from the River Dee continues to perform this function, and the base of a water tower can also still be found. The vacant site of the 1853 Banchory Station is earmarked by the Royal Deeside Railway Preservation Society for the terminus of the restored railway from the Milton of Crathes, and a store of track panels (gifted by a consortium including Railtrack) is kept in a disused layby to the east of Banchory.