diff --git a/src/core/execution/TrainExecution.ts b/src/core/execution/TrainExecution.ts
index 44efb7b73..6840b4542 100644
--- a/src/core/execution/TrainExecution.ts
+++ b/src/core/execution/TrainExecution.ts
@@ -117,7 +117,30 @@ export class TrainExecution implements Execution {
       tiles.length > 0
         ? tiles[Math.floor(tiles.length / 2)]
         : railroad.getStart().tile();
-    this.player.addGold(-fare, midTile);
+    let netFare = fare;
+
+    // Optimization: if the train owner is also the sole territory owner along this railroad,
+    // they would immediately get back the full 20% share. In that case, just charge the net
+    // 80% fare and skip the distribution step.
+    let shouldDistributeShare = true;
+    if (
+      this.mg &&
+      fare > 0n &&
+      rail.isSoleTerritoryOwner(this.mg, this.player)
+    ) {
+      const profitShare = fare / 5n; // 20%
+      netFare = fare - profitShare;
+      shouldDistributeShare = false;
+    }
+
+    // Charge fare (possibly reduced by owner share optimization) to the train owner
+    this.player.addGold(-netFare, midTile);
+
+    // Share 20% of the fare with territory owners along the railroad,
+    // proportional to the number of tiles they own under this track.
+    if (shouldDistributeShare && this.mg && fare > 0n) {
+      rail.distributeFareShare(this.mg, fare);
+    }
     // Update client-side coloring when fare changes significantly
     if (this.mg !== null) {
       rail.updateFare(this.mg);
diff --git a/src/core/game/GameImpl.ts b/src/core/game/GameImpl.ts
index 92c41bcd7..6631aa37b 100644
--- a/src/core/game/GameImpl.ts
+++ b/src/core/game/GameImpl.ts
@@ -606,6 +606,8 @@ export class GameImpl implements Game {
       type: GameUpdateType.Tile,
       update: this.toTileUpdate(tile),
     });
+    // Notify rail network so it can invalidate cached territory ownership
+    this._railNetwork.onTileOwnerChanged(tile);
   }
 
   relinquish(tile: TileRef) {
@@ -627,6 +629,8 @@ export class GameImpl implements Game {
       type: GameUpdateType.Tile,
       update: this.toTileUpdate(tile),
     });
+    // Notify rail network so it can invalidate cached territory ownership
+    this._railNetwork.onTileOwnerChanged(tile);
   }
 
   private updateBorders(tile: TileRef) {
diff --git a/src/core/game/RailNetwork.ts b/src/core/game/RailNetwork.ts
index 404c062be..1f44b0077 100644
--- a/src/core/game/RailNetwork.ts
+++ b/src/core/game/RailNetwork.ts
@@ -1,8 +1,12 @@
 import { Unit } from "./Game";
+import { TileRef } from "./GameMap";
 import { TrainStation } from "./TrainStation";
 
 export interface RailNetwork {
   connectStation(station: TrainStation): void;
   removeStation(unit: Unit): void;
   findStationsPath(from: TrainStation, to: TrainStation): TrainStation[];
+  // Notify the rail network that the owner of a tile has changed,
+  // so any railroads crossing that tile can update cached territory ownership.
+  onTileOwnerChanged(tile: TileRef): void;
 }
diff --git a/src/core/game/RailNetworkImpl.ts b/src/core/game/RailNetworkImpl.ts
index 7db749c87..51f77a257 100644
--- a/src/core/game/RailNetworkImpl.ts
+++ b/src/core/game/RailNetworkImpl.ts
@@ -89,6 +89,9 @@ export function createRailNetwork(game: Game): RailNetwork {
 
 export class RailNetworkImpl implements RailNetwork {
   private maxConnectionDistance: number = 4;
+  // Index which railroads cross which tiles so we can quickly invalidate
+  // cached territory ownership on conquests.
+  private railsByTile: Map<TileRef, Set<Railroad>> = new Map();
 
   constructor(
     private game: Game,
@@ -96,6 +99,28 @@ export class RailNetworkImpl implements RailNetwork {
     private pathService: RailPathFinderService,
   ) {}
 
+  private registerRailroad(railRoad: Railroad) {
+    for (const tile of railRoad.tiles) {
+      let set = this.railsByTile.get(tile);
+      if (!set) {
+        set = new Set<Railroad>();
+        this.railsByTile.set(tile, set);
+      }
+      set.add(railRoad);
+    }
+  }
+
+  private unregisterRailroad(railRoad: Railroad) {
+    for (const tile of railRoad.tiles) {
+      const set = this.railsByTile.get(tile);
+      if (!set) continue;
+      set.delete(railRoad);
+      if (set.size === 0) {
+        this.railsByTile.delete(tile);
+      }
+    }
+  }
+
   connectStation(station: TrainStation) {
     this.stationManager.addStation(station);
     this.connectToNearbyStations(station);
@@ -124,6 +149,15 @@ export class RailNetworkImpl implements RailNetwork {
     station.unit.setTrainStation(false);
   }
 
+  onTileOwnerChanged(tile: TileRef): void {
+    const rails = this.railsByTile.get(tile);
+    if (!rails) return;
+
+    for (const rail of rails) {
+      rail.markTerritoryDirty();
+    }
+  }
+
   /**
    * Return the intermediary stations connecting two stations
    */
@@ -180,6 +214,7 @@ export class RailNetworkImpl implements RailNetwork {
 
   private disconnectFromNetwork(station: TrainStation) {
     for (const rail of station.getRailroads()) {
+      this.unregisterRailroad(rail);
       rail.delete(this.game);
     }
     station.clearRailroads();
@@ -200,6 +235,7 @@ export class RailNetworkImpl implements RailNetwork {
     const path = this.pathService.findTilePath(from.tile(), to.tile());
     if (path.length > 0 && path.length < this.game.config().railroadMaxSize()) {
       const railRoad = new Railroad(from, to, path);
+      this.registerRailroad(railRoad);
       this.game.addExecution(new RailroadExecution(railRoad));
       from.addRailroad(railRoad);
       to.addRailroad(railRoad);
diff --git a/src/core/game/Railroad.ts b/src/core/game/Railroad.ts
index 294b32554..f85e9b2ac 100644
--- a/src/core/game/Railroad.ts
+++ b/src/core/game/Railroad.ts
@@ -1,4 +1,4 @@
-import { Game, Tick } from "./Game";
+import { Game, Player, Tick } from "./Game";
 import { TileRef } from "./GameMap";
 import { GameUpdateType, RailTile, RailType } from "./GameUpdates";
 import { TrainStation } from "./TrainStation";
@@ -13,6 +13,12 @@ export class Railroad {
   private railTiles: RailTile[] | null = null;
   // Last fare used for client-side coloring
   private lastFare: bigint | null = null;
+  // Cached territory ownership along this railroad: which players own how many tiles.
+  private territoryOwners: Map<
+    Player,
+    { count: number; sampleTile: TileRef }
+  > | null = null;
+  private territoryDirty: boolean = true;
 
   constructor(
     public from: TrainStation,
@@ -44,6 +50,93 @@ export class Railroad {
     this.updateCongestionEma(currentTick);
   }
 
+  /**
+   * Mark cached territory ownership as dirty; should be called when any tile owner
+   * along this railroad changes.
+   */
+  markTerritoryDirty(): void {
+    this.territoryDirty = true;
+  }
+
+  /**
+   * Lazily (re)compute which players own tiles under this railroad.
+   */
+  private ensureTerritoryOwners(
+    game: Game,
+  ): Map<Player, { count: number; sampleTile: TileRef }> {
+    if (!this.territoryDirty && this.territoryOwners) {
+      return this.territoryOwners;
+    }
+
+    const owners = new Map<Player, { count: number; sampleTile: TileRef }>();
+
+    for (const tile of this.tiles) {
+      const ownerOrNull = game.owner(tile);
+      if (ownerOrNull && ownerOrNull.isPlayer()) {
+        const owner = ownerOrNull as Player;
+        const existing = owners.get(owner);
+        if (existing) {
+          existing.count += 1;
+        } else {
+          owners.set(owner, { count: 1, sampleTile: tile });
+        }
+      }
+    }
+
+    this.territoryOwners = owners;
+    this.territoryDirty = false;
+    return owners;
+  }
+
+  /**
+   * Distribute a 20% share of the given fare to territory owners along this railroad,
+   * proportional to the number of tiles they own under the track.
+   */
+  distributeFareShare(game: Game, fare: bigint): void {
+    if (fare <= 0n) return;
+
+    const profitShare = fare / 5n; // 20%
+    if (profitShare <= 0n) return;
+
+    const owners = this.ensureTerritoryOwners(game);
+    if (owners.size === 0) return;
+
+    let totalTiles = 0;
+    owners.forEach((entry) => {
+      totalTiles += entry.count;
+    });
+    if (totalTiles <= 0) return;
+
+    const totalTilesBig = BigInt(totalTiles);
+    let distributed = 0n;
+
+    const entries = Array.from(owners.entries());
+    entries.forEach(([owner, { count, sampleTile }], index) => {
+      let share: bigint;
+      if (index === entries.length - 1) {
+        // Last owner gets the remaining share to avoid rounding loss.
+        share = profitShare - distributed;
+      } else {
+        share = (profitShare * BigInt(count)) / totalTilesBig;
+        distributed += share;
+      }
+      if (share > 0n) {
+        owner.addGold(share, sampleTile);
+      }
+    });
+  }
+
+  /**
+   * Return true if there is exactly one territory owner along this railroad
+   * and that owner is the given player.
+   */
+  isSoleTerritoryOwner(game: Game, player: Player): boolean {
+    const owners = this.ensureTerritoryOwners(game);
+    if (owners.size !== 1) return false;
+    const [onlyOwner] = owners.keys();
+    return onlyOwner === player;
+  }
+
   private updateCongestionEma(currentTick: Tick): void {
     if (this.lastCongestionTick === null) {
       this.lastCongestionTick = currentTick;