Pennsylvania Railroad decided to abandon a large portion of the railway. The Denton, Maryland to Lewes section was purchased by the Maryland & Delaware Coast Railway, but with the decline of the locomotive as vehicle traffic increased, the line was again scheduled to be abandoned in 1931. The state of Delaware eventually purchased the portion of the line from Ellendale to Milton to maintain a freight link, making this section the last operable section of one that once spanned over . Over sixty residents of Ellendale served in World War I, World War II, the Korean War, and Vietnam War. In 1927 the Lincoln and Ellendale Electric Company was established bringing electricity to the residents of the town for the first time. Also in 1927 the Ellendale State Forest was established by the State Highway Department. When it was turned over to the State Forestry Department in 1932, it totalled , today it has been expanded and combined with the Redden State Forest to well over . The Appenzeller Tract in Ellendale, a small section, was a gift to the state from the DuPont family. A large woods fire between Ellendale, Georgetown, and Milton burned over in 1930 and forced the General Assembly to pass a series of forest protection laws establishing a fire control system which included building a fire tower just outside Ellendale to alert people of fires. In the 1950s, numerous school districts in Kent and Sussex Counties, including Ellendale, continued to fight against desegregation after the ruling of Brown v. Board of Education. The protests which begin at the Milford School District, eventually bringing about a lawsuit that went to the Delaware Supreme Court which ruled that while segregation was unconstitutional, it did not require immediate desegregation. This was further bolstered by the findings of Griffin v. County School Board of Prince Edward County. Bryant Bowles, President of the National Association for the Advancement of White People led several anti-desegregation rallies and boycotts in the area, including Ellendale, that resulted in decreased attendance at the schools. Ellendale School 125 and Ellendale Colored School 195C reached an agreement on consolidation, but attorney Louis L. Redding complained to the Department of Public Instruction that black teachers were being subjected to scrutiny that their white counterparts were not. After desegregation, all students were educated at Ellendale School 125. The Ellendale Town Council reorganized a police department in the 1970s.