Already in 1860, a committee formed in Penig with the aim of constructing a railway from Glauchau to Wurzen.
In 1864 the Saxon parliament permitted the construction of a railway from Leipzig along the Mulde valley to Chemnitz.
Since no private entrepreneur could be found for this project, permission was granted instead in 1868 for a railway from Glauchau via Wurzen to the border with Prussia.
The private Muldenthal-Eisenbahngesellschaft was awarded the concession for the construction and operation of a railway between Glauchau and Wurzen on 29 April 1872.
No concession was granted for the line to the border, because a continuation in Prussia could not be guaranteed.

While the right of way was intended for double-track operation which was taken into account in the construction of the Rochsburg tunnel and several bridges, due to the lack of a northern continuation the traffic never reached the levels that would have justified doubling of the line.
Nevertheless the line was built to mainline standards.
It was put into operation in several stages:
from Glauchau to Penig on 10 May 1875,
from Rochlitz to Großbothen on 9 December 1875,
from Penig to Rochlitz on 29 May 1876, and
from Großbothen to Wurzen on 30 June 1877.

On 1 August 1878 the Muldenthal-Eisenbahngesellschaft was taken over by the Saxon state, the line and the rolling stock passed into the hands of the Royal Saxon State Railways.
The separate station in Wurzen was closed, and the station of the Leipzig–Dresden railway became the terminus of the Muldentalbahn.

The Rabenstein bridge near Grimma was strengthened in 1931 which was possible without interrupting the traffic, because the line and the bridge had been prepared for double-tracked operation.

On 15 April 1945 the Rabenstein bridge across the Mulde river was destroyed, and the line remained interrupted between Großbothen and Grimma unterer Bahnhof.
Tracks on this section were lifted for war reparations, and despite repairs to the bridge they were never relaid.
Passenger traffic between Grimma unterer Bahnhof and Nerchau ceased on 28 May 1967, but was partly reopened with trains between Golzern and Wurzen on 24 September 1967, before ceasing on this section completely on 31 May 1969.
The Wurzen-Golzern section remained in operation for freight traffic as an extended siding of Wurzen station, and tracks were renewed between Nerchau and Golzern in the 1970s.
The right of way near Dorna-Döben station was used for a widening of the parallel road.

A connecting curve between this line and the Borsdorf–Coswig railway was built south of Großbothen in the mid-1970s.
It was mainly intended for strategic reasons and was only used for regular traffic for a short time in 1995 while a bridge in Großbothen was renewed.
Preparations had been made for deploying a temporary bridge across the River Mulde between Neichen and Trebsen, the terminus of the line from Beucha.
For this purpose, a track had been laid from Trebsen station to the left bank of the river.

Freight traffic between Wurzen and Golzern ended on 2 June 1996.
Only a short section between Wurzen and a silicate factory in nearby Dehnitz remains in operation, the remainder of the Wurzen–Grimma section has been transformed into a cycle trail.

Faulty trackwork caused the passenger trains between Colditz and Rochlitz to be replaced by buses from 6 December 1999, and freight traffic between Großbothen and Wechselburg officially ceased on 5 December 1999.
Passenger traffic between Rochlitz and Großbothen ceased on 27 May 2000, freight traffic between Glauchau and Wechselburg on 2 July 2000, and passenger traffic between Wechselburg and Rochlitz on 9 June 2001.
Operations on the last section between Glauchau and Wechselburg ceased on 13 August 2002 in the course of the 2002 European floods which caused widespread damage in the area, and because of the poor state of the line and several engineering works along it.

Deutsche Regionaleisenbahn (DRE) leased the Glauchau-Großbothen line and the Rochlitz–Narsdorf section of the Rochlitz–Penig railway in 2005 with the intention of
Already in 1860, a committee formed in Penig with the aim of constructing a railway from Glauchau to Wurzen. In 1864 the Saxon parliament permitted the construction of a railway from Leipzig along the Mulde valley to Chemnitz. Since no private entrepreneur could be found for this project, permission was granted instead in 1868 for a railway from Glauchau via Wurzen to the border with Prussia. The private Muldenthal-Eisenbahngesellschaft was awarded the concession for the construction and operation of a railway between Glauchau and Wurzen on 29 April 1872. No concession was granted for the line to the border, because a continuation in Prussia could not be guaranteed.
While the right of way was intended for double-track operation which was taken into account in the construction of the Rochsburg tunnel and several bridges, due to the lack of a northern continuation the traffic never reached the levels that would have justified doubling of the line. Nevertheless the line was built to mainline standards. It was put into operation in several stages:
from Glauchau to Penig on 10 May 1875,
from Rochlitz to Großbothen on 9 December 1875,
from Penig to Rochlitz on 29 May 1876, and
from Großbothen to Wurzen on 30 June 1877.
On 1 August 1878 the Muldenthal-Eisenbahngesellschaft was taken over by the Saxon state, the line and the rolling stock passed into the hands of the Royal Saxon State Railways. The separate station in Wurzen was closed, and the station of the Leipzig–Dresden railway became the terminus of the Muldentalbahn.
The Rabenstein bridge near Grimma was strengthened in 1931 which was possible without interrupting the traffic, because the line and the bridge had been prepared for double-tracked operation.
On 15 April 1945 the Rabenstein bridge across the Mulde river was destroyed, and the line remained interrupted between Großbothen and Grimma unterer Bahnhof. Tracks on this section were lifted for war reparations, and despite repairs to the bridge they were never relaid. Passenger traffic between Grimma unterer Bahnhof and Nerchau ceased on 28 May 1967, but was partly reopened with trains between Golzern and Wurzen on 24 September 1967, before ceasing on this section completely on 31 May 1969. The Wurzen-Golzern section remained in operation for freight traffic as an extended siding of Wurzen station, and tracks were renewed between Nerchau and Golzern in the 1970s. The right of way near Dorna-Döben station was used for a widening of the parallel road.
A connecting curve between this line and the Borsdorf–Coswig railway was built south of Großbothen in the mid-1970s. It was mainly intended for strategic reasons and was only used for regular traffic for a short time in 1995 while a bridge in Großbothen was renewed. Preparations had been made for deploying a temporary bridge across the River Mulde between Neichen and Trebsen, the terminus of the line from Beucha. For this purpose, a track had been laid from Trebsen station to the left bank of the river.
Freight traffic between Wurzen and Golzern ended on 2 June 1996. Only a short section between Wurzen and a silicate factory in nearby Dehnitz remains in operation, the remainder of the Wurzen–Grimma section has been transformed into a cycle trail.
Faulty trackwork caused the passenger trains between Colditz and Rochlitz to be replaced by buses from 6 December 1999, and freight traffic between Großbothen and Wechselburg officially ceased on 5 December 1999. Passenger traffic between Rochlitz and Großbothen ceased on 27 May 2000, freight traffic between Glauchau and Wechselburg on 2 July 2000, and passenger traffic between Wechselburg and Rochlitz on 9 June 2001. Operations on the last section between Glauchau and Wechselburg ceased on 13 August 2002 in the course of the 2002 European floods which caused widespread damage in the area, and because of the poor state of the line and several engineering works along it.
Deutsche Regionaleisenbahn (DRE) leased the Glauchau-Großbothen line and the Rochlitz–Narsdorf section of the Rochlitz–Penig railway in 2005 with the intention of 
Glauchau–Wurzen railway