Nine carriages of the first Sikh special train, which was transporting pilgrims from interior Sindh to Nankana Sahib to celebrate the 553rd birth anniversary of Baba Guru Nanak, derailed at the Jaranwala section of the track.
Despite the derailment, the pilgrims only suffered minor injuries.
Railway traffic on the Lahore-Jaranwala track was suspended and remained closed for eight hours until the wreckage was cleared.
The affected pilgrims were then sent to Nankana Sahib via another train.
Pakistan Railways CEO, Salman Sadiq, has ordered an inquiry into the accident.