The Depot is the main area where the Skarloey Railway engines sleep and collect their trains. It was introduced in the sixth season, replacing the Crovan's Gate sheds and it sits between Cros-ny-Cuirn and the Bluebell Valley Station. The sheds consist of two brick sheds, one single lined, one double and a double lined open wooden shed. There is also a goods station at the depot and Mr. Percival's House is located opposite. Lots of trucks have been kept here and the depot is usually quite busy. Since the sixteenth season, a standard gauge line which was a part of Stepney's Branch Line has been added and runs through the depot.
- In Blue Mountain Mystery and the sixteenth season, the open wooden shed section was repainted green but returned to its original brown livery in the eighteenth season.
- Since the eighteenth season, the narrow gauge coaches have been kept here instead of the carriage shed at Crovan's Gate.