Used for the mining of stone, although unsure of the date, the Manx Electric Railway company opened and used Dhoon Quarry, firstly for supplying materials needed for the railway and also to provide material for road building and other building needs. The quarry was particularly busy and exported a considerable amount of stone until the need seemed to decrease by around 1914, though they continued to use it until 1969. Later it was taken over by the Isle of Man Highways Board and finally closed in 1972.

Dhoon Quarry is still however a stopping place on the Manx Electric Railway, though services very rarely stop here anymore. The site is now often used by 4x4 and other off-road enthusiasts.