Abstract-The wheel-rail-sleepers system is simulated as a series of moving point loads on an Euler-Bernoulli beam resting on a visco-elastic half space. This paper concentrates on the railsleepers interaction system (railway system) and the fault detection. The main objective is to mathematically develop and implement a dynamic model of a railway system then the diagnosis of system defects using a Luenberger observer (LO). The simulation results are based on a physical description, mathematical equations and simulations with MATLAB simulation program.