This paper presents experimental study on dispersive waves propagation in steel rails. The propagation of longitudinal and transverse waves was generated by an impulse hammer and measured in three points. Wavelet transform (WT) and short time Fourier transform (STFT) were applied to analyze the time signals. Analysis of signal by STFT does not provide a proper timefrequency representation due to a fixed size window. The wavelet transform can effectively identify the time-frequency components in waves. The wavelet signal processing of the experimental wave propagation signals is intended to be used for rail flaw detection.