Based on the theory of multi-body dynamics, the metro vehicle-track space coupled dynamic model was established. Then, the wheel-rail contact and creep characteristics and the dynamic responses of wheel-rail system on the common fastener track were analyzed. Finally, the causes and development characteristics of the inner rail corrugation in small radius curve were studied. The results show that the wheel-rail creep force on the inner rail side approaches to the saturated creep force, while the wheel-rail creep force on the outer rail side does not reach the saturation state. The characteristic wavelength of the axle box vertical vibration acceleration on the inner rail side is 32 mm, which is close to the measured wavelength of the inner rail corrugation. Therefore, it can be determined that the inner rail corrugation is caused by the friction self-excited vibration of wheel-rail system with the condition that the creep force reaches saturation. Under the initial corrugation irregularity, the inner rail corrugation is in the process of continuous development, and the development speed is faster than that of the outer rail wear. Meantime, it can be seen that the smaller the curve radius is, the faster the rail corrugation develops.