Killdane's original name is in allusion to the circle of standing stones on the plateau above the village. There is a local legend, with no historical foundation, that a bloody battle was fought here against a party of Danes. (This tale is reserved for English visitors only; no-one else would swallow it.)
Since the building of the North Western Railway, Killdane has virtually become a suburb of Cronk. The branch line to Peel Godred was built in 1923, and locomotive exchanges are made here. An hourly service of trains is provided which becomes half-hourly at peak periods. Four passenger trains a day each way continue the journey along the branch to Peel Godred hauled by electric locomotives.
In 1967, a ballast processing plant and distribution centre was set up by the Arlesdale Ballast, Granite and Gravel Company. A Motorail Terminal for the Island was later opened here in 1977.
In the television series The Sodor Ironworks are located south of the town, while the Sodor Ice Cream Factory is located east of the town. Mr. Jolly's Chocolate Factory is located slightly to the north-west. The Killdane Branch Line connects the southern portion of the town to the Main Line.
- In the television series, the station has the same structure as Wellsworth.