The fault with the track circuit meant the lights and sirens at the Garve crossing did not activate, and cars continued to cross the tracks as the lunchtime train approached.
The incident, which took place on Saturday, November 29, was confirmed this week by Network Rail.
The problem with the power supply was reported at 9.55am and was repaired at 3pm.
The crossing at Garve has been highlighted in the past as having one of the worst safety records in Scotland for drivers ignoring red lights at level crossings.
On the day of the latest incident, passengers standing on the platform at the nearby station could clearly see there were no lights flashing as cars continued to drive over the crossing as the train neared.
The train was seen to stop about ten yards from the crossing in the centre of the village and the driver got out. The traffic then came to a stop at the crossing, the driver got back on the train and it slowly made its way over the road before coming to a stop again. A few minutes later the train started up again and then pulled into the station.
A Network Rail spokesman said a light indicator further up the track had made the driver aware the warning lights and klaxon at the open crossing were not working and he was able to stop the train before it reached the roadway. He said the Garve crossing was fitted with a manual override button as a backup system to indicate to motorists to stop and it is believed the driver got out of the train and operated it on this occasion.
"The driver was aware of the problem before he got to the crossing and there was no danger of him crossing the road and hitting any vehicles," said the spokesman.
He said the fault had been caused by an electrical component, which had caused the power failure. But he stressed the indicator light which warns the driver of the fault at the crossing runs through the signalling system and would not have been affected by the power failure.
l.bradshaw@rsjournal.co.uk