Poole Park Railway has been closed until further notice.
The decision by BCP Council follows a derailment yesterday.
It involved the same carriage which derailed in December, despite assurances from the manufacturer that the issue had been resolved.
The council says the safety of passengers is of paramount importance and that the service will cease until a safe and permanent resolution is found.
In a statement, Cllr Mike Cox, BCP Council’s Portfolio for Finance, said: “Unfortunately, Poole Park Railway is now closed.
“This morning [12/2], one of the carriages derailed. This was the same carriage which derailed at the end of last year, despite repairs and assurances from the manufacturer that the issue had been resolved.
“The safety of railway passengers is of paramount importance.
“That’s why we’re being cautious and temporarily ceasing the train service to undertake further investigations and allow the carriage manufacturer to return to the site to understand the cause and seek a permanent and safe resolution.
“We do not yet know how long the railway will remain closed, but we would like to reassure users that the track, engine and other carriages are not affected by this fault.”