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The earliest toy trains were made of lead and had no moving parts. Some had wheels that turned, but these had to be pushed or pulled. Some of the early 19th-century drive toy rails were made from tinplate, like the large, durable, stylized locomotive toys in the U.S., which were painted red and gold and decorated with hearts and flowers. model trains liverpool

Around 1875, technological improvements in materials and manufacturing allowed tin to be stamped, cut, wrapped, and lithographed faster than previously.
Toy trains were revolutionized when Märklina German company that specialized in doll house accessories, sought to make an equivalent toy for boys where a continuous revenue stream could be guaranteed by purchasing add-on accessories for decades after the initial purchase. In addition to boxed sets comprising a train and track, Märklin offered additional track, rolling stock, and buildings sold separately, creating the predecessor to the modern model train layout featuring buildings and scenery along with a working train.

Electric trains adopted, with the first appearing in 1897, produced by the U.S. company Carlisle & Finch. As residential use of power became more common from the early 20th century, electric trains gained popularity and as time moved on, these electrical trains grew in sophistication, gaining light, the ability to change direction, to emit a whistling noise, to smoke, to couple and uncouple cars as well as load and unload freight. Toy trains from the first half of the 20th century were often made of lithographed tin; later trains were frequently made mostly of plastic.
Pull toys and wind-up trains were marketed towards children, while electric trains were marketed towards teenagers, particularly teenaged boys.
Consumer interest in trains as toys waned in the late 1950s, but has undergone resurgence since the late 1990s due in large part to the popularity of Thomas the Tank Engine.

Today, S gauge and O gauge railroads continue to be considered toy trains even by their own adherents and are often accessorized with semi-scale model buildings by Plasticville or K-Line (who owns the rights to the Plasticville-like buildings created by Marx from the 1950s into the 1970s). However, due to their high cost, one is more likely to find an HO scale or N scale train set in a toy shop than a O scale set.

Many modern electric toy trains comprise sophisticated electronic equipment which exude digitized sound effects and allow the operator to safely and easily run multiple remote control trains on one loop of track. In the last few years, many toy rail operators may operate a train with a TV camera in the front of the motor and hooked up to a screen, such as computer monitor. This will show an image, like that of a genuine (smaller size) railroad.

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