Short term local friction heating events in railway operations might lead to phase transformations in pearlitic rail and wheel steels. A modelling framework for phase transformations combined with cyclic plasticity for the individual phases is presented. The phase transformation kinetics include e.g. austenitization due to heating, martensite formation due to rapid cooling and martensite tempering. The modelling framework has been calibrated against cyclic dilatometry test data and cyclic mechanical experiments. Simulations of a double heating event followed by rolling contact loadings show phase transformations and how cyclic residual stresses develop in the different phases.