The line was electrified at 750v DC on opening, and carried goods as well as passenger traffic. The necessity of transferring goods from narrow gauge to standard gauge at Vorchdorf caused the freight traffic to dwindle rapidly, leaving tourists, commuters and schoolchildren to use the line. In 1990, following suspension of the ÖBB service on the parallel standard gauge line, the Gmünden terminus was moved from Traundorf to the ÖBB terminus at Seebahnhof, accomplished simply by laying mixed gauge track in the station area, and building a short connecting line back to the old terminus. Gmünden Seebahnhof remains owned by ÖBB, the line being intact but unused, back to the Westbahn at Lambach.

At Vorchdorf the station is near the Schloss Eggenberg Brewery, brewing reputedly the strongest beer in Austria. The railway operates a daily "ride and tour" service from Gmünden which includes a guided tour of the brewery.

The line offers a travelling restaurant service on Sunday lunchtimes. More information in German can be obtained from the Stern und Hafferl website noted below.

The company also offers "hobbylok" driving lessons – between service trains – using 1921-built ET 23.103. The course must be booked in advance and starts from the vehicle workshops at Vorchdorf, shared with the standard gauge line. The amateur driver operates the vehicle along the most of the length of the line on a return journey, and receives a certificate and photograph at the end of the course. More information again and booking information from their website.