An integrated model for line planning and train scheduling based on the circulation of trains is proposed to reduce passenger dissatisfaction and operation costs for an urban rail transit line. The turnaround operations of trains and their departures from and arrivals at the depot were included in this model. Furthermore, binary variables were introduced to indicate whether train service existed, and a discrete event model was used to determine the order of the train services. In addition, a bi-level optimization approach is proposed to solve the integrated line-planning and train-scheduling problem, in which the number of required train services, the headways between train services, the departure times, and the arrival times were optimized simultaneously on the basis of passenger demand. The performance of the proposed integrated model and bi-level approach is illustrated with a case study of the Beijing Yizhuang line.