An acoustic emission (AE) based approach is proposed in this study to identify and locate newly initiated defects or the propagation of existing defects in railroad switch rails. Defect-induced AE signals are identified through frequency analysis, as frequencies of these signals are much higher than those induced by structural vibration. Continuous wavelet transform (CWT) is employed to analyze the Lamb wave dispersion of the detected signal, so that two characteristic points can be selected on the CWT contour map to locate the defect. Using this approach, defects in a damaged switch rail can be located using a single sensor.