The Galveston Railroad Museum opened to the public in 1983, at the site of the 1932 Santa Fe depot and railyard. The museum grew rapidly, collecting dining car china, a model railroad layout, and acting as the terminal for the Texas Limited excursion train. After the Texas Limited ceased operations in 1996, the museum acquired its passenger cars and two locomotives.

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In 2008, Hurricane Ike flooded the museum with 10 feet of salt water. Much of the museum's collection was destroyed or severely damaged. The museum closed to rebuild and restore its collection, acquiring two F-7A diesel locomotives in Santa Fe colors to replace the Texas Limited locomotives. After three years of cleanup, the museum reopened in 2011.

 

At present, the Railroad Museum has forty pieces of rolling stock, the largest collection of dining car china in the Southwest, and two incredible model railroad layouts. The museum also owns a mile of track, and runs weekly caboose rides on Saturdays between 11:00am and 1:30 pm.