The thermo-mechanical interaction between brake block and wheel tread during braking has been found to cause thermal crack on the wheel tread. Due to thermal expansion of the rim material, the thermal cracks will protrude from the wheel tread and be more exposed to wear during the wheel/block contact than the rest of the tread surface. The wheel rim is in residual compression stress when is new. After service running, the region in the tread has reversed to tension. This condition can lead to the formation and growth of thermal cracks in the rim which can ultimately lead to premature failure of wheel. In the present paper, the thermal cracks of railway wheel, one of severe damages on the wheel tread, were evaluated to understand the safety of railway wheel in running condition. The residual stresses for damaged wheel which are applied to tread brake are investigated. Mainly X-ray diffusion method is used. Under the condition of concurrent loading of continuous rolling contact with rails and cyclic frictional heat from brake blocks, the reduction of residual stress is found to correlate well with the thermal crack initiation.