Cyclic cryogenic treatment, a major cycle accompanied by zero or more subsidiary cycles, was conducted on the hardened 42CrMo steel using orthogonal design method to investigate the effect of different parameters (cryogenic temperature, holding time, and cycles number) of cryogenic treatment on wear resistance and impact toughness of the steel. Range analysis was performed to obtain the influencing order of the three parameters and their optimum values. The results show that after cryogenic treatment, the steel exhibits higher wear resistance and impact toughness, whereas no significant change in hardness. For wear resistance, the influencing order of parameters is cryogenic temperature, holding time, and cycles number, and the optimum values of the parameters are −160°C, 24 h and two cycles, respectively. For impact toughness, the influencing order of parameters is cryogenic temperature, cycles number, and holding time, and the optimum values are −120°C, 24 h and three cycles, respectively. The wear topography and fracture topography were examined using scanning electronic microscopy (SEM) to investigate the wear mechanism and fracture mechanism of the steel after cryogenic treatment, respectively. The results show that after cryogenic treatment, the wear mechanism is the combination of abrasive wear and adhesive wear with oxidative wear, and the fracture mechanism is a quasicleavage fracture. The microstructure was also examined by SEM to investigate the influencing mechanism of cryogenic treatment for improving wear resistance and impact toughness of the steel. It suggests that more precipitation of fine carbides dispersively distributed in the matrix is responsible for the beneficial effect of cryogenic treatment on wear resistance and impact toughness of the steel.