On 20 April 1908, a train packed with holiday makers returning to Melbourne from Ballarat was struck by another train coming from Bendigo. The Ballarat train was scheduled to arrive at Sunshine at 10.03 pm but was running late.  When it did arrive at the station it had to stop twice to allow passengers in the rear coaches to alight due to the length of the train.

The train from Bendigo was due to arrive at Sunshine at 10.30 pm but was running late and therefore travelling at reasonable speed to try and make up time. As the train from Ballarat prepared to leave on its final leg into Melbourne it was struck from behind by the train from Bendigo hauled by two ‘AA class’ engines.

The impact of the collision at 10.50 pm demolished the guards van and the rear four carriages. Gas from one of the trains caught fire. Darkness impeded rescue efforts with only lamp light and light from the fire available. It was not until 1.00 am that a relief train arrived with doctors, nurses and an ambulance corp.

In all, 44 people were killed and 413 injured with 72 of the injuries being serious. All lives lost occurred on the Ballarat train.

An extensive inquiry was held and many recommendations were made that would impact on future safety.