The use of continuous welded rail is increasing because of its many advantages, including vibration reduction, enhanced driving stability, and maintenance cost savings. In this work, two different types of continuous welded rails were examined to determine the influence of repeated wheel-rail contact on the crystal structure, microstructure and mechanical properties of the rails. The crystal structure was determined by x-ray diffraction, and the microstructure was examined using optical microscopy and scanning electron microscopy. Tensile and microhardness tests were conducted to examine the mechanical behaviors of prepared specimens taken from different positions in the cross section of both newly manufactured rail and worn rail. Analysis revealed that both the new and worn rail had a mixed microstructure consisting of ferrite and pearlite. The specimens from the top position of each rail exhibited decreased lamella spacing of the pearlite and increased yield strength, ultimate tensile strength and hardness, as compared with those from other positions of the rail. It is thought that the enhanced mechanical property on the top position of the worn rail might be explained by a mixed effect resulting from a directional microstructure, the decreased lamella spacing of pearlite, and work hardening by the repeated wheel-rail contact stress.