The formation and propagation of cracks in rolling contact fatigue were observed by synchrotron radiation computed laminography, and the effect of stringer-type inclusion orientation was examined. For longitudinal inclusions, cracks started forming at their tips. After cracks propagated toward the rolling direction, a longitudinal crack was kinked simultaneously at both its tips, and propagated toward the direction perpendicular to the rolling direction to form lateral cracks. After kinking, horizontal cracks were formed from the deepest point of a lateral crack, leading to flaking. On the other hand, for specimens with lateral inclusions, cracks propagated to the lateral direction without the formation of longitudinal cracks. Since the propagation life of lateral cracks and that of horizontal cracks were unrelated to the inclusion orientation, the rolling contact fatigue life of specimens with longitudinal inclusions was considerably longer than that of specimens with lateral inclusions.