Palani used to be a part of the Pollachi-Rameswaram MG line prior to the commencing of gauge conversion works on the line, which is yet under progress. On 20th November 2012, The Dindigul-Palani section of the line was completed, and the local railway station became open to railway traffic again.
Currently 2 pairs of Passenger Trains are operated between Dindigul and Palani and another additional Passenger Train runs from Madurai via Dindigul. Furthermore, an express train was launched in October 2013, which connects Palani with the state capital Chennai through Dindigul-Karur-Namakkal-Salem-Vellore.