Although the Newcastle Emlyn branch (as it had become) was busy and popular in the 1930s, the thinly scattered population of the area served by the station and the low level of economic activity made the railway loss-making after World War II. Nationalisation of the railways took place in 1948 and the GWR lines were part of the Western Region of British Railways. Closure of the Pencader to Newcastle Emlyn passenger service to stem financial losses was considered, and the branch closed to passengers after the last train on 13 September 1952. A limited goods service continued, but it too was discontinued on 28 September 1973.