The rapid development of train transportation toward higher speed and heavier load requires superior wheel materials with high strength and toughness. Herein, a 20Mn2SiNiMo bainitic wheel steel is developed and bainitic wheels are produced. The quenching and tempering process of bainitic wheels is studied considering the bainitic ferrite content and stability of retained austenite (RA). The quenching process includes water spraying and air cooling. Proeutectoid ferrite can be suppressed during the water‐spraying process. During air cooling, the bainitic ferrite transformation is promoted and the stability of RA is improved with the extension of cooling time. Corresponding microstructure of as‐quenched steel at wheel rim is bainite with different morphologies, martensite, and RA. The evolution of RA at lower and higher tempering temperatures is dominated by carbon enrichment and carbon consumption, respectively. Yield strength of bainitic wheel steel mainly comes from body‐centered cubic phase (containing martensite and bainitic ferrite). The increase of dislocation density and the decrease of effective grain size are beneficial for yield strength improvement. Bainitic packets with various direction, deformation‐induced martensite transformation of RA, and plastic deformation all play an important role in enhancing the toughness of bainitic wheel steel.