The railway station is served by trains on the London Waterloo to Exeter St. Davids West of England Main Line, originally built by the London and South Western Railway. When the village was served by the Somerset and Dorset Joint Railway, trains had to reverse into Templecombe station. This unusual characteristic is shared with Limerick Junction in County Tipperary in Ireland. The station closed in 1966 due to the Beeching Axe, but re-opened due to local pressure in 1983.
Templecombe's largest employer is Thales Underwater Systems.