Kobester Diamond said: "Yep knew this was coming ... let's not have any nostalgic fun anymore, let's be politically correct ... one of the reasons why I hate Australia and its authority."

Claire Glanville wrote: "Cotton wool strikes again."

"Absolute bloody joke," Michelle Howell wrote.

Others feared the decision would spell the end for the historic tourist train.

"No one will go on Puffing Billy anymore," wrote Faye Lougheed.

"One incident and absolute diaster for this otherwise brilliant attraction in our hills."

In a statement on the Facebook page the company said it understood the "great disappointment" caused by the decision.

"We understand the decision to temporarily suspend the dangling of legs in carriages may cause great disappointment in the community as this is an age-old tradition for our beloved Puffing Billy," it said.

"But until the investigation has concluded the suspension will remain in place."

Police have launched an investigation into Tuesday's crash which left one man injured after the Puffing Billy steam train and a tour bus collided in the Dandenong Ranges.

General manager Nadine Hutchins said organisation needed to "take every step we can to protect our passengers" who would not be allowed to dangle their legs out of the side of the carriages until further notice.

"We need to make sure we consider everything during this investigation period," Ms Hutchins said.

"This is the first time an incident like this has happened."

Ms Hutchins said it was unclear how long the investigation would take.

Police said the mini-bus was heading east on School Road, in Menzies Creek, when it collided with the steam train just before midday.

Nobody on the train was injured, but one of the sixteen passengers on the mini-bus was taken to hospital.

Photos taken by a bystander indicate that the tour bus clipped the side of the train and ended up on its side.

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Puffing Billy chief executive John Robinson said he was grateful there had been no serious injuries sustained in the crash.

"Safety is of the utmost importance at our heritage steam railway and we have procedures in place to mitigate further danger and to ensure the continued safety of all passengers on the railway," he said.

A passenger on the train, Laurie Harris, said he was in the carriage behind the one that was struck by the mini-bus and saw the crash unfold.

"We saw a white van with a trailer come hurtling down the the hill and it collided with the train," Mr Harris said.

"The carriage shook really badly, then the van veered left and was pulled about 50 metres along the tracks, derailing one of the carriages."