Abstract: Permafrost (perennially frozen ground) appears widely in the Golmud-Lhasa section of the Qinghai-Tibet railway and is characterized by high ground temperature (≥ ?1°C) and massive ground ice. Under the scenarios of global warming and human activity, the permafrost under the railway will gradually thaw and the massive ground ice will slowly melt, resulting in some thaw settlement hazards, which mainly include longitudinal and lateral cracks, and slope failure. The crushed rock layer has a thermal semiconductor effect under the periodic fluctuation of natural air. It can be used to lower the temperature of the underlying permafrost along the Qinghai-Tibet railway, and mitigate the thaw settlement hazards of the subgrade. In the present paper, the daily and annual changes in the thermal characteristics of the embankment with crushed rock side slope (ECRSS) were quantitatively simulated using the numerical method to study the cooling effect of the crushed rock layer and its mitigative ability. The results showed that the ECRSS absorbed some heat in the daytime in summer, but part of it was released at night, which accounted for approximately 20% of that absorbed. Within a year, it removed more heat from the railway subgrade in winter than that absorbed in summer. It can store approximately 20% of the “cold” energy in subgrade. Therefore, ECRSS is a better measure to mitigate thaw settlement hazards to the railway.