When the Skarloey Railway was introduced in the fourth series, the engine and carriage sheds were similar to their Railway Series counterparts; they were mirrored and the wooden part of the shed had two tracks instead of one and the sheds and rails were lowered to ground level. Across from the sheds was a standard gauge shed/shunting yard and a roundhouse. The sheds were seemingly replaced by the Depot from the sixth series onwards. There is also a two berth engine shed at Rheneas.
In the eighteenth series, similar looking sheds reappeared on a curve track right behind Crovan's Gate station. However, the carriage shed is missing, the brick shed does not have a back with the rails running right through them, and the wooden shed is single lined only. They also do not appear to be used for resting at night.
The Skarloey Railway Sheds are based upon the Talyllyn Railway's sheds at Pendre, Tywyn. The wooden structure was based on the former barn used to store Talyllyn when it was out of service.
All characters introduced in the fourth series had their nameboards taken at the Skarloey Engine Sheds:
Duncan and Duke were located at the front of the middle shed.
Sir Handel and Peter Sam were located at the front of the wooden shed.
Rheneas was located at the front of the carriage shed.
Skarloey and Rusty were located at the back of the carriage shed.