Friction Management has become an integral part in daily operations of many railways. Friction Management includes the combined application of a gauge face lubricant and a top-of-rail (TOR) friction modifier. This paper will deal with the friction modifier aspect of friction management. The general concept of a friction modifier for TOR application will be highlighted and explained. The key properties of a friction modifier include optimized friction conditions between wheel and rail and positive friction/traction characteristics over a wide creepage range and different application rates. Furthermore, the effects of a friction modifier are discussed in this paper by referring to extensive laboratory and track testing. The reduction of lateral forces will reduce wear and damage of track components, namely the rail and wheel. The positive friction characteristics will impact squeal noise appearance, vibration emissions and corrugation development. The optimized friction conditions will mitigate derailment potential, improve ride quality and will allow for reductions in energy and fuel consumption. This differentiates a friction modifier from a gauge face lubricant that simply aims at reducing the coefficient of friction to a minimum value. Finally this paper will highlight the importance of considering friction management as a part of the railway system and not as a stand-alone solution in order to achieve the maximum system benefit.