The reliable operation of railway embankments traversing degrading permafrost regions is challenged by climate warming. This study examines performances of four main types of railway embankments on the Qinghai-Tibet Plateau in thermally stabilizing permafrost foundation over warm permafrost using numerical modelling and 10-year monitoring data. Then, a reinforcement measure that combines a thermal conductivity variable system (TCVS) was designed to improve the cooling capacity of the crushed-rock sloped embankment (CRSE) by countering the heat absorption of slopes during summers. A coupled thermal-fluid-solid model was built to simulate and assess the cooling performance and reinforcing capacity of the new design. Results show that the crushed-rock embankments can produce convection cooling on the permafrost subgrade but the performances vary with different structures. The CRSE has insufficient cooling capacity to withstand the underlying permafrost degradation in warm permafrost regions. The optimized CRSE that combines the TCVS can effectively cool the underlying warm permafrost and decrease the shady-sunny slope effect under a warming climate, and can be used as an effective reinforcement measure. This study confirms the application of air-cooled embankments in protecting permafrost subgrade and provides guidance for structural design of embankment traversing degrading permafrost.