Electrification of the Gippsland line to Traralgon was completed between 1954–1956, to support freight traffic in the Latrobe Valley. Freight traffic declined as demand decreased, and Traralgon station was eventually de-electrified on 2 July 1987.[2][4]
On 16 June 1995, the current station building and platform opened, as part of a commercial development on the site.[5] This station is located on the opposite side of the railway line to the former station. The former station building still exists, and is under private ownership. The area still retains a turntable and engine shed, with the latter listed on the Victorian Heritage Register. Traralgon is now only used for passenger services, with freight operations ceasing in 1994.
In early 2019, Rail Projects Victoria announced a second platform will be built at the station.[6][7] The project will also involve upgrading the existing pedestrian overpass.[7]