During the past few years, several incidents of freight car wheel failure during operation have occurred due to fatigue crack and overheating from braking. Tensile residual stress on the wheel tread creates an environment conducive to the formation of thermal cracks that may threaten the safety of train operations. It is important to investigate the residual stress on wheels in order to prevent derailment. In the present paper, the residual stress on wheels is measured using the x-ray diffraction system and the residual stress is analyzed using FEM. The result shows that the residual stress on the wheel rim is lower than that on the wheel tread center and the stress on over-braked wheels changes from compression residual stress to tensile residual stress.