It was taken over by the state-owned SJ in 1948, reclassified and transferred to Småland's narrow-gauge lines in 1954 before being retired from active commercial service in 1965. It was bought by the Skara local authority in 1967 (prompted by Föreningen 29:an) with initial intentions to serve merely as a static monument.
Enthusiasts restored the heavily-worn engine back to working order, bringing it under steam by 1971. The efforts to save and run VGJ 29 directly sparked the creation of the Skara-Lundsbrunns Järnvägar (SkLJ) museum railway, keeping the spirit of the old Västergötland narrow-gauge network alive.
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