Automatic thresholding is an important technique for rail defect detection, but traditional methods are not competent enough to fit the characteristics of this application. This paper proposes the Maximum Weighted Object Correlation (MWOC) thresholding method, fitting the features that rail images are unimodal and defect proportion is small. MWOC selects a threshold by optimizing the product of object correlation and the weight term that expresses the proportion of thresholded defects. Our experimental results demonstrate that MWOC achieves misclassification error of 0.85%, and outperforms the other well-established thresholding methods, including Otsu, maximum correlation thresholding, maximum entropy thresholding and valley-emphasis method, for the application of rail defect detection.