The railway transportation system is nowadays one of the most important systems for land transport because its increased load carrying capacity, high speed, low costs, connectivity and ecologic features. As a result, the railways are subjected to additional loads which produce a higher level of strains and stresses. The rolling contact of a wheel on a rail is the basis of many rail-wheel related problems including the rail corrugation, wear, plastic deformation, rotating interaction fatigue, thermo-elastic-plastic behavior in contact, fracture, creep, and vehicle dynamics vibration. Therefore, this topic became the research subject for many researchers worldwide. Practical experience shows that the stress distribution is an important factor at the rail-wheel contact interfaces, that is, two materials in contact at rolling interfaces which are highly influenced by the geometry of the contacting surfaces, material constants, loads and boundary conditions. Three different procedures have conventionally been utilized to inspect rail-wheel contacts including Hertzs theory and Kalkers analytical method. The calculation of these stresses becomes much more complicated in three dimensional real size geometries. For this reason, many scientists have simplified the problem mainly by means of theoretical or numerical approaches based on the Hertzs theory, which can be considered the starting point of all subsequent researches. Both static and dynamic contact stresses have been carefully examined. Accurate theories, as well as computer software have been developed to evaluate all the parameters which influence the rail-wheel interaction. The analytical equations were employed to calculate the Hertzian stresses using the Octave software. For these elements, the simplifying hypothesis was to consider only the elastic properties of materials and, consequently, to neglect the elastic-plastic characteristics. Besides, many models generally neglected the friction coefficient between the rail and wheel, which is one of the most critical factors in determining the precise amount of stresses and distribution of contact pressure in rail-wheel contact area. On the other hand, some practical methods have also been introduced to solve traditional problems related to rail-wheel interaction. Other original contribution of this research is to create a precise finite element model of a 3D rail-wheel, axle and pads in order to evaluate stresses, strains, and contact forces in this complex interaction system. However, unlike many previous works, this study focuses on the real conditions of the problem including exact boundary and loading conditions, using real-size complete model of various components with precise shapes.