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The Skarloey Railway Engine Sheds, often referred to as The Depot, are where the Skarloey Railway engines sleep and collect their trains.

The sheds consist of two brick sheds, one single lined, one double and a double lined open wooden shed. There is also a goods station at the depot and Mr. Percival's House is located opposite of the sheds. Lots of trucks and coaches have been kept here as well.

Since the sixteenth season of the television series, a standard gauge line which is a part of Stepney's Branch Line has been added and runs through the depot.

The sheds also replace the sheds that were previously seen at Crovan's Gate.