Abstract: The contact of a rail-wheel was analyzed making use of three-dimensional elasto-plastic finite element method, with respect to the short wavelength corrugation on the wheel/rail contact surface. The plastic deformation process on the contact surface of the rail in the presence of high frequency force was analyzed based on the calculating results. It was showed that the rail contact surface experienced hardening and plastic deformation in the repetitive rolling of the high frequency force under certain conditions, which led to short-wavelength strain and corrugation of the rail. The plastic deformation and shakedown limit of the rail was related to the sleeper distance and the friction coefficient, which was attributed to the kinematic hardening of the rail material. The yielding of the rail material occurred at some spot of the sub-surface when the friction coefficient was below 0.3, while it occurred on the contact surface when the friction coefficient was above 0.3, and in the latter case the rail material would fail faster than in the former case.