The railway continued its expansion, notably with the large and impressive redevelopment of the main terminus at Douglas which was undergoing quite the transformation, not least of which being the booking hall structure in replacement of the timber original of 1873 which was dismantled and sold off; the boundary walls, ornamental railings and stepped access from Bank Hill were also established at this time and the entire site re-signalled, all controlled from a new cabin.  A timber station was also provided at Union Mills at this time, surviving closure and demolished in 1977.

It was noted that at Castletown land had been purchased by the Railway Company for the establishment of a station master's house and goods shed, though in the event the latter never materialised; it must be assumed that this land is in the area of the goods yard, though a timber-built goods shed is understood to have been established in the earliest days on the same site as that which remains today, so in part the information may be erroneous, though this may be connected to the revised entrance, the original having been to the rear of the site rather than the southern side as it now stands.