A tracks status inspection system based on coordinate transformation matrix algorithm was introduced. The structure, composition, measurement principles, design and test of the inspection system were elaborated. It was composed of two handy carts. Variation of tracks status could be denoted by three relative turning angles under the two coordinate systems of the two carts by means of coordinate transformation matrix, and tracks geometry parameters could be obtained using the matrix recursion algorithm. The instrumentation can carry out inspections such as track height, height irregularity, level irregularity, track gauge, track alignment and triple pit and so on.