Soil instability and potential failure under principal stress rotation require greater attention than ever before due to increased operation of heavier and longer high-speed trains. This study focuses on the interplay between cyclic vertical stress and torsional shear stress on the failure condition of a low-plasticity subgrade soil, facilitated by a hollow cylinder apparatus. Combined vertical and torsional loading significantly influences strain response, with increasing torsional stress leading to higher strain accumulation. Moreover, the data indicate that an increase in torsional shear stress is generally accompanied by a swift rise in the EPWP and a corresponding decrease in the soil stiffness. In view of this, a novel parameter, the overall stiffness degradation index (delta o) that simultaneously captures both the vertical and torsional shear effects under principal stress rotation is proposed as an early indicator of instability. In addition, a normalised torsional stress ratio (NTSR), which is the ratio of the amplitude of torsional shear stress to the confining pressure, is introduced to assess the impact of torsional shear stress. Whereby, higher NTSR values correlate with premature inception of failure. These experimental results provide new insights for a better understanding of soil instability under simulated railway loading.