The station was opened as Haven Street and was renamed Havenstreet on 9.6.1958. The original station had a single platform. A siding was later added to serve a small gasworks opposite the station. Although the gasworks closed in the 1920's the siding remained in use. In July 1926 a new crossing loop was installed by the Southern Railway running behind the platform. The original station buildings were removed at that time. A new brick building was constructed alongside the line.

The station was reopened in 1971 and is now the headquarters of the Isle of Wight Steam Railway.