The train had been due to arrive at Waverley at 3.04pm yesterday, but bosses decided to stop the service after the issue became apparent.
Passengers were told the train would not be continuing on to its stated destination soon after pulling in to Haymarket.
A spokesman for ScotRail said: “The Dunblane to Edinburgh service was stopped at Haymarket due to a dragging brake.
“As a result of this brake fault a decision was taken to terminate the service.”
He added: “We would like to apologise to all passengers for any inconvenience caused.”