The shed was built as a one road brick shed in 1925 for Annie and Clarabel. Shortly after Toby arrived in 1951 with Henrietta and Elsie, the original shed was pulled down when track alterations were made at Ffarquhar, and was replaced with a two road wooden shed to accommodate the additional stock.
When Daisy arrived in 1960, she decided to stay in the Carriage Shed instead of the Engine Shed as she found the latter smelly. She insulted the three coaches occupying the shed by calling them "old rubbish", forcing Percy and Toby to take them away. Annie and Clarabel would return to the shed, and continue to occupy it with Daisy, but Henrietta and Elsie are now usually kept overnight at Knapford Sheds, with Toby.
The Carriage Shed is a four road shed located at Elsbridge, alongside an engine shed. It only appeared in the second series.