Research purposes: Along with the Internet development，the Internet of Things technology is applied widely in industry and livelihood． The Internet of Things technology plays an important role in solving the problem of urban transportation congestion and reducing energy consumption，and for the railway transportation it also has been preliminary applied in the device security system and the passenger /freight transportation service areas． With the large － scale railway construction and rapid development of Internet of Things technology，the Internet of Things technology must have wide development prospects in railway system． This paper researches the application of the Internet of Things in railway transportation．
Research conclusions: Combined with the application of the Internet of Things in the intelligent traffic and through analyzing the sufficient condition of popularizing and applying the Internet of Things technology in China railway system currently，the research is done on the possibility of wide application of the Internet of Things technology in automatic fare collection system，train tracking and positioning systems，station train information sharing system，integrated security early warning system，cargo management system and warehouse management system etc and the development direction of Internet of Things technology in railway traffic is expounded．
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