Designed by Wilson Worsdell the NER P3 class which was later to become the LNER class J27 was developed from the then existing P2 class (LNER J26) with a redesigned boiler to provide a deeper firegrate. 80 locomotives was ordered from the company works at Darlington, the North British Locomotive company, Beyer Peacock & co. and Robert Stephenson & co. delivered between 1906 and 1909. A subsequent batch of 25 locomotives was constructed at Darlington works in 1921-2 and a final 10 completed under an LNER order in 1923.
The NER allocated the J27 engines to long distance coal and goods trains but as larger ex-RoD and new LNER locomotive types arrived the smaller 0-6-0s moved to more general goods services and were allocated widely across the North Eastern area. Under LNER and later British Railways ownership J27s were sent to other areas, including former Great Eastern Railway sheds in East Anglia and Carlisle, which was administered by the LNER Scottish region.
Withdrawals began in March 1959 as new diesel locomotives began to take over the J27s traditional duties, but 36 were still working in mid-1966 and the last was not withdrawn until September 1967.
J27 Number 65894 was purchased from British Rail for preservation in December 1966, being restored to steam by 1971, in time to assist with the preparations for opening the North Yorkshire Moors heritage railway. Having traveled to several other heritage railways and been displayed at the National Railway Museum and Darlington Railway Museum 65894 was returned to steam at the NYMR in May 2018 following a lengthy overhaul.