This paper presents the design and construction approach adopted for the widening and stabilisation of the existing decline tunnel forming part of the Scenic Railway Upgrade project at Katoomba in the Blue Mountains of New South Wales (NSW), Australia. The overall upgrade project included new trains and track, rebuilding of the top and bottom station and installation of a new winch and control system. All the works were undertaken over an eight-month period between August 2012 and April 2013 as part of a $30 M upgrade of the railway.The railway is the steepest cable-driven line in the world at a maximum of 52 extending over 350 m and descending from the escarpment into the Jamison Valley. The track was built in the 1880s for coal haulage and is recognised as a remarkable engineering achievement for its time. The tunnel section extends for about 120 m at the start of the decline and is about 3.5 m wide and 3.5 m high. The tunnel was excavated principally within medium to high strength Banks Wall sandstone and given that the widening only involved about 200 mm of trimming of the crown and sidewall this aspect of the work was not a critical support issue, except at the upslope portal. The tunnel crown however is entirely intersected by a major near vertical shear zone which presented significant challenges for the tunnel stabilisation works.Three-dimensional laser survey scanning was used for definition of the tunnel clearance envelope for the widening, and also to subdivide the tunnel into various geotechnical sections to assist in support design. Specifically oriented rock bolts extending beyond the shear zone into stable rock were used together with mesh, shotcrete and extensive strip drains and flushing points for drainage of the shear zone.Unique aspects of this project were included into the specifications and work methods. This included construction of a mobile working platform for tunnel works, the use of dry shotcrete application, difficult access for rock bolting and limiting vibration during the tunnel trimming works due to the risks associated with crown instability. The works also took into consideration particular safety constraints/work exclusion areas to address the risk of detachment of rock which could mobilise downslope to the track area below. This was required because other works were in progress such as micro-piling and bottom platform works which were being undertaken concurrently with the tunnel work.CITATION:Rosin, S G and Hughes, A, 2014. Scenic Railway Tunnel upgrade in the Blue Mountains, New South Wales - an approach to design and construction, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 607-618 (The Australasian Institute of Mining and Metallurgy: Melbourne).