In this paper,a fast-speed and real-time online rail inspection method based on half-cycle orthogonal power demodulation algorithm is proposed. For this method,the power characters of de-tection signal which represent the degree of rail track can be calculated using only half-cycle detec-tion signal because of the symmetry characteristic of detected sine signal and reference signal. The theoretical analysis,simulation results and experiment results show that the demodulation preci-sion of proposed method is almost equal to fast Fourier transform (FFT) demodulation method and orthogonal demodulation method,but has high demodulation efficiency and less FPGA resources cost. A high-speed experiment system based on three coils structured sensor is built for rail inspec-tion experiment at a moving speed of 200 km/h. The experiment results show that proposed meth-od is more effective for rail inspection and the time resolution of proposed method is double of clas-sic method that based on FFT and orthogonal.