It happened just before 3 p.m. Sunday at a railroad crossing on Fairview Rd. just outside of Charlotte.
Eaton County Sheriff's Deputies say the car failed to stop completely and was hit by the train.
The driver was thrown out of the car and died at the scene. The other passenger, meantime, was taken to the hospital and treated for non-life threatening injuries.
No one on the train was hurt.
Deputies say the crossing is controlled by a stop sign, but does not have a crossing arm or signal.
Police are not releasing the victims names at this time.