Rail corrugation increases life cycle cost of both track and vehicle and is one of the main reasons of track and vehicle defects. To address this problem, this paper explores the effect of rail corrugation on track response. A Finite Element model developed to consider vehicle and track characteristics. Vehicle is a 10 degree of freedom mass-spring-dashpot model which can simulate vertical displacements and rotations. Rail is modeled as an Euler-Bernoulli beam with two degrees of freedom at each node which lies on discrete support to simulate sleeper and fastening system support. The total train-track matrices of mass, damping and stiffness have been formed. Solving the differential equations of motion in time domain for each time step results the response of track to train dynamic forces. A sensitivity analysis has been performed to explore the effect of different train and track parameters on rail displacement. The results of analyses show the effect of corrugation depth and wavelength as well as train speed and axle load on rail deflections and demonstrate the importance of each parameter in the studied range.