With the rapid growth of railway mileage in China, the degree of heavy load of railway wagons continues to increase. An interference technology based on Rayleigh backscattering signal in optical fiber was proposed by using existing communication optical cables along railway lines. When the fiber vibrated slightly, the phase and refractive index of the fiber at disturbed position changed, which resulting in the Rayleigh backscattering light. By performing differential calculation on the Rayleigh signal curves before and after the operation, the location of the interference light intensity signal corresponded to the location of the disturbances was obtained. Based on this method, the recognition and positioning of railway vehicles were realized. By collecting and analyzing the time-domain and frequency-domain signal, the signal strength, train length, the number of carriages and other characteristics were extracted, and the model of railway vehicles were accurately recognized. Compared with traditional positioning technologies, this technology could realize long-distance monitoring, and the sensing fiber was buried underground on both sides of the railway, which was conducive to the concealment and protection of optical fiber. Experimental results show that the positioning error of the system is within ±10 m, and the detection of railway speed and position within 25 km can be realized.