Firefighters were called to the station and all passengers were asked to leave the carriages - with delays now expected until 11am as work is carried out to manage the situation.
One passenger told The Courier that the fire broke out in carriage two just before 8am, with many passengers now evacuated and waiting for replacement services at the Warwick station.
The affected train has now been moved and the line is reopen for rail services.
A statement from Network Rail said: “A broken down train at Warwick Parkway is causing delays of up to 30 minutes to trains between Leamington Spa and Birmingham Snow Hill. This is expected to continue until 11am.”
A spokesperson from Warwickshire Fire and Rescue said crews from Leamington and Coleshill were attending the train fire and warned of delays and disruption on the line.
He said: “This was a fire on a passenger train involving the running gear of one of the rear carriages.
“Fire crews and rail personnel evacuated the station platform. All rail traffic was stopped to enable fire fighting activities.”