Tynwald voted overwhelmingly to spend £720,000 on renewing trackwork on the Snaefell Mountain Railway.
Member for Infrastructure Kate Beecroft (Lib Van, Douglas South) explained this was the third phase of a project to replace trackwork that was in critically poor condition.
The third phase will replace all of the points on the running line and renew the last section of poor condition plain track.
Tynwald voted in October 2010 to spend £1.5m on replacing the worst affected areas of life expired track to allow the railway to operate safely during 2011. Further works were carried out in 2012.