To investigate the microstructure and damage of friction-fatigued carburized martensitic steels for the reliability of remanufacturing parts, the retained austenite (£) phase and residual stress were characterized by X-ray diffraction (XRD) and scanning electron microscopy (SEM). We evaluated their changes before and after roller pitching tests, and before and after the operation of the gear parts.In the roller pitching tests, the retained £ phase decreased with increasing load and number of cycles, presumably due to martensitic transformation caused by the cyclic load. The residual stress ratio (after/before the test) was significantly lower at high loads than that before testing, which was ascribed to the appearance of surface microcracks and the resultant release of internal stress. From SEM observations of the cross-section of the friction surface, we confirmed that the changes in the retained £ phase and residual stress ratio reflect the process of formation of multiple microcracks in the 10 µm surface layer. The decreases in both the retained £ phase ratio and the residual stress ratio would therefore appear to rule out reuse. A decision on the potential for gear reuse can be made by means of non-destructive testing, i.e., investigating the relationship between the retained £ phase ratio and the residual stress ratio.