 The station came about in 1937 when, in response to holiday camp development in the area, the Southern Railway decided to realign its branch line to New Romney (which had been opened in 1884) closer to the sea and to open two intermediate stations - Lydd-on-Sea and Greatstone-on-Sea.Greatstone was convenient for Greatstone Camp and Maddieson's Holiday Camp and competed with services provided by the Romney, Hythe and Dymchurch Railway (RHDR) which had already been operating in the area for a decade.The station was equipped with basic facilities consisting of a long single platform on the up side with a simple shelter.