In 1877 Hamilton & North-Western Railway was constructed through the centre of Palgrave, from the southwest to the northeast. This railway was taken over by the Grand Trunk Railway in 1888, and later absorbed by Canadian National Railways. Much of the track throughout this region was damaged by flooding in 1954 as a result of Hurricane Hazel and had to be rebuilt. Palgrave was a flag station on the CNR. Although there was a station with a passenger waiting room, the Agent at this location was removed in 1931. The station was located on the west side of the track (west of Hwy 50). Scheduled passenger service ended in July 1960 and the station was removed shortly thereafter. The rails over this section were removed in 1986.