Woody Bay station is to have yet another carriage restored for use on its Barnstaple to Lynton line after being granted £150,000 from the Coastal Communities Fund.
The grant is one of twenty being given to seaside projects across the UK.
It will go towards the rebuilding of coach 11 which dates back to 1897.
Coach 11 will be the third carriage to undergo reconstruction along with coaches seven and 17 which are being built by the Trust's Essex Area Group.
It is hoped these two coaches will be in place by May of this year.
The Lynton to Barnstaple line was partially re-opened in 2004 and has been using carriages which came from Thorpe Park in Surrey.
Tony Nicholson, Trustee at Woody Bay, said: "Nothing will better recreate the experience of riding on the original Lynton & Barnstaple line than riding in an original L&B carriage.
"The new grant will enable the Railway to carry more passengers, thereby creating more jobs and providing more opportunities for volunteers to develop their skills."