Abstract: A three-dimensional elastic-plastic model of wheel-rail rolling contact was established by finite element method to investigate the effect of yield stress of rail material on residual stresses and strains in the rail.In the model,the geometry and boundary conditions of the rail were taken into account.Repeated wheel rolling and sliding were simulated by multiple translations of normal and tangential surface tractions with Hertz form across rail running surface.The results show that the maximum equivalent plastic strain and shear strain occur on the contact surface,where the cracks initiate easily.The plastic flow direction in the rail near the contact surface is consistent with that observed in the field.An increase in yield stress of rail materials leads to a decrease in residual deformation,and drives the location of the absolute values of the maximum residual stresses to the contact surface.