The advent of steam railmotors, as well as the downturn in freight, leads the GWR to reconsider passenger services on the branch from Newnham to Cinderford. Proposals are put forward for a service between Cinderford and Newnham (including an extension to the S&W's new station at Cinderford) and to make use of the dormant line from Cinderford to Micheldean Road.
Construction begins on the branch's passenger stations and halts.
Passenger services from Newnham to Steam Mills Halt are introduced
Passenger services are extended to Drybrook Halt
The FoD branch extension into the S&W's Cinderford Station is opened for passengers. With the FoD branch route to Gloucester being shorter, this proves detrimental to S&W passenger services; however, the FoD branch continues to use Whimsey for Cinderford goods services. Bilson Halt is closed for public use.
Platform modifications at several stations is authorised.
Auto-trailer working on the line is authorised.
The new colliery at Staple Edge, Eastern United, begins to achieve large outputs, which the branch is able to take advantage of.
A fairly serious accident occurs at Bilson involving an Auto-trailer; fortunately with no fatalities.
The unused section from Drybrook Halt to Micheldean Road is lifted.
Ruddle Road Halt is closed. It is removed in June 1920
Some passenger services along the branch are withdrawn. Bilson Halt is re-opened.
A quarry north of Drybrook is opened resulting in the reinstatement of the line from there to Drybrook Halt. However, traffic expectations are not reached.
The increases in freight on the branch are starting to cause problems at around this time.
Passenger services between Cinderford and Drybrook Halt are withdrawn.
Extra loops are provided at Bullo to ease the traffic congestion
Storage at Bullo continues to be a problem. New sidings at Northern United Colliery in 1937 do alleviate the problem somewhat.
Bullo Cross Halt is damaged by fire.
Another section of the line to Micheldean Road is ultilised as Hawthorns Tunnel becomes an explosives store.
Lightmoor Colliery closes. At around this time, plans are proposed for a new industrial estate at Cinderford that will be served by the branch. Ironically the plans take another 40 years to be implemented, by which point the branch has been closed.