Rolling contact fatigue tests on 100Cr6 steel were carried out with a ball-on-rod tester. Microstructural damage was manifested by gradual hardness changes under the subsurface, and microcracks formed adjacent to inclusions; both being evidence of plastic deformation. The hardness increase appears to be due to the development of residual stress, while the microcracks form as a result of the concentration of stress around inclusions. The microcrack orientation is suggested to be affected by the stress state, depending on the degree of residual stresses generated. The residual stress development may be a key factor for optimising the bearing element testing methods, by considering its influence on the damage morphology.