The surfaces of rails are often damaged during constant loading, so it is essential to repair the damaged areas in a railroad network to get the best performance. However, the traditional methods of improving rails are expensive, time-consuming, and require excessive effort. Therefore, some creative ideas would be helpful in this process, one of which may be on-site overlay arc welding instead of exchanging the whole part of the rail. In this paper, the performance of such a method is assessed experimentally, and its results are interpreted.For the investigation, a worn part of the 136RE rail, used in the freight railway network in the U.S., was chosen. After milling and flattening the surface of the rail, a submerged arc welding process was applied to rebuild this rail by utilizing a 1/8-in Lincore 40-S depositing wire. This study used four destructive tests: 1) XRD residual stress measurement, 2) SEM/OM analysis, 3) hardness test, and 4) tensile test. The results showed that the required mechanical strength could be achieved. However, the repaired area seems more vulnerable to the forces encountered on a railroad network due to the more brittle structure due to high temperatures in this region. Considering this flaw is critical because forces are primarily dynamic in railway networks, especially in heavy rails, which are higher due to the extensive use of freight trains.