We took our oldest two daughters and it was a magical event for them. The lights at the train station provided a wonderful backdrop for personal pictures and the staff was wonderful.
I especially recommend this for children under 9 yrs. of age. It will be very magical!
On a side note there is a wonderful Photo Santa accross the street from the train.
One of the best ways to see the area is by taking a ride on the Great Smoky Mountain Railway. The railway offers regularly scheduled trips originating in Bryson City, Dillsboro to the south, and Andrews to the west on a train pulled by a steam locomotive or one of four conventional diesel locomotives.
While the railway offers a number of different trips, the most popular is a four-hour excursion along Fontana Lake to the Nantahala Gorge and back. Beverages and snacks are available on the trains, and you can ride either in a comfortable enclosed coach or in an open car, which provides breathtaking views and excellent photo opportunities.
This museum is particularly fun when they are having a special event which they have frequently. They have a Thomas Train Day, Great Pumpkin Patch Day, the little engine that could day. It's particularly nice for children aged 6-9 as they are old enough to enjoy the experience of riding on a train and to not get bored with the length of the trip.
This is a fun thing to do if your child in interested in trains. However, the ride is a bit long for younger children and can become monotonous as you back-track to return to the station after a brief stop so you are seeing the same scenery twice. We'd definitely do it again, but there may be better train experiences out there.