Rail grinding, a common maintenance operation in the railway industry, is not a fully efficient process, as energy not used for cutting dissipates into the participants' bodies. The energy dissipated into the rail surface can affect its engineering properties, potentially leading to malfunction and microstructural transformations. A phenomenological model was developed to study the dissipation mechanisms that take place in rail grinding. The model includes wear, thermal dissipation, and phase transformation, driven by the coupling of thermal and mechanical effects. Energy and mass balances were calculated within a controlled volume at the experimental grinding interface. Experiments were conducted in a lab built for experimental grinding. The model results were validated through statistical comparison with experimental data and findings from specialized literature. Additionally, the study explores White Etching Layer (WEL) formation under grinding conditions and the influence of mechanical stress. By integrating theoretical modeling with experimental validation, this research enhances the understanding of energy dissipation in rail grinding, providing a foundation for optimizing grinding processes, reducing material degradation, and improving rail longevity.