Greater Manchester Fire and Rescue Service said around 40 firefighters were called to the derailed train that caught fire close to Wilburn Street in Salford on the edge of Manchester city centre.
Fire engines from Salford, Moss Side, Broughton and Manchester Central fire stations were involved.
Four people, a driver, engineer and two others were on board the train and walked off safe and well.
The fire is believed to have involved an engine at the back of the train.
British Transport Police (BTP) have confirmed the train was a charter service run by West Coast Railways.
Station Manager Paul Etches said: "Crews quickly brought the fire under control to stop it spreading to the other carriages using jets and foam branches.
“Firefighters will remain on the scene dampening down and assisting BTP with their enquiries."
More top news
Stormy mixed week across the NW. More weather warnings for the start of the new week
Windy this week at times with heavy rain and turning much colder. Frost expected Wednesday and Thursday nights
Storm Clodagh is causing damage right across Greater Manchester with gusts of wind up to 75mph