The ultrasonic impact treatment on U70 raill steel was carried out under different technology by using HJ-II ultrasonic impact machine. The electric current was 1.5 A, the amplitude was 24 µm and the impact frequency was 10000 HZ during the treatment, the peening duration was 60 min. The influence of impact on microstructure was observed with the scanning electron microscope of 6360LA type and high resolution transmission electron microscope of JEM-2100 type, and the hardness of impacted surface was also researched before and after impact treatment. The wear resistance was tested by using M-2000 type wearing machine. The experimental results indicate that the surface strength of rail steel can be improved evidently by using ultrasonic impact treatment. The surface microstructure of the rail steel could be refined to nanoscale and the hardness and wear resistance of impact layer were significantly improved through the ultrasonic impact technology. Compared to the specimen without treatment, its surface hardness was increased 26.4%, and the wear resistance was increased 40.63%. The depth of plastic deformation zones of the specimen with 60 min treatment is nearly 100µm. In the plastic deformation zone, ferrite is refined to nanoscale grains so that the matrix is strengthened.