STEAM, Swindon's showpiece museum of the Great Western Railway, received a special commendation in the prestigious European Museum of the Year Award 2002.
The attraction was one of three UK museums to be short-listed for the honour.
And although it did not win the top prize, it was the only attraction to be given special recognition at the ceremony in Luxembourg on Saturday night.
It beat the Ondaatje Wing of the National Portrait Gallery and the Highland Folk Museum in Newtonmore, Scotland.
The eventual winner of the 25th museum of the year award was the Chester Beatty Library in Dublin.
Steam general manager Andrew Lovett said: "The international panel of judges were enormously impressed with the approach Steam makes to engaging with its audiences to tell the story of the GWR.
"We are overwhelmed with pride for the recognition that has been shown by the European Museum Forum for the efforts of everyone involved in the museum."
Steam, owned and managed by Swindon Council, was opened in June 2000 by the Prince of Wales and celebrates the Great Western Railway that dominated Swindon's industrial landscape for more than a century after the mid-1800s.
But Patrick Green, chairman of the European Museum Forum, added: "For overall achievement Steam was praised by our judges for making a fascinating museum of social history with a railway theme.
"Descriptions of working conditions and the life of staff are shown in exhibitions, documentary films and theatrical constructions and many events are organised for both children and adults."
Despite this success, visitor numbers remain far below those needed for it to break even.
Only 95,000 visited over the past 12 months leaving council taxpayers to subsidise the museum to the tune of £515,000.
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