The toy train was going from Darjeeling to Siliguri when the accident occurred between Kurseong and Mahanadi at around 3.25 PM, North East Frontier Railway officials said in Guwahati.
T Bhutia, director of Darjeeling Himalayan Railway that runs the toy train service, said in Darjeeling that 10 persons including the driver were injured in the accident and all of them have been admitted to Kurseong hospital.
Rest of the passengers were sent to their destination by road from Kurseong, which is around 32 km from Darjeeling town.
Railway engineers reached the spot to ascertain the cause of the accident, he said.
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