A full explicit FEM simulation of wheelset passing through switch panel is presented. The real 3D geometry of the switch panel is used, both vertical and lateral response are taken into consideration. The dynamic interaction is analysed and it is found that the damage mechanism on the switch blade and stock rail is a complex interaction of wear, fatigue and impact, which can be well described by explicit FEM simulation. Parametric analysis of running speed, traction coefficient and the friction coefficient between switch blade gauge surface and wheel flange indicate that decreasing running speed can help to reduce the damage on switch panel. The traction coefficient has little influence on the maximum impact response, but a higher traction coefficient is beneficial for eliminating the dynamic response after the maximum impact response point. The influence of the friction coefficient on the dynamic impact response is not significant, but a lower friction coefficient is favourable for decreasing the wear damage on the switch blade and increasing running safety. This work can provide a good understanding of the interaction on switch panel and give theoretical support for maintenance and improving the design.