Effect of Mn addition on rolling contact fatigue of C-base induction hardened bearing steels has been investigated to develop inexpensive surface-hardened bearing steels with improved resistance to rolling contact fatigue. Fatigue tests were conducted in elasto-hydrodynamic lubricating conditions at a shaft speed of 5,000rpm, under max. Hertzian stress of $492kg/mm^2$. It was found in the C-Mn steels that effective depth of induction hardened layer and amount of retained austenite were slightly increased in comparison with those of C-base steels. finer interlamellar spacing of pearlite in the C-Mn steels was also observed using TEM. Decomposition of retained austenite during rolling contact fatigue was smaller in quantity in the C-Mn steels than C-base steels. This might be associated with enhanced mechanical stability of retained austenite with addition of Mn. Statistical analysis of fatigue life for C-Mn steels using Weibull distribution indicated that improved resistance to rolling contact fatigue was mainly attributed to transformation induced plasticity and mechanical stability of retained austenite.