The rapid expansion of Hungary’s infrastructure projects, especially in railway construction, has significantly increased the demand for crushed stone. Both national and EU-funded initiatives have strained supply chains, resulting in logistical challenges and material shortages. With limited domestic production capacity, efficient resource management is crucial to keeping projects on track. This paper evaluates Hungary’s supply chain for crushed stone, identifying key weaknesses and proposing solutions to enhance sustainability. Purpose. This study investigates the logistical and supply chain difficulties in delivering crushed stone for Hungary’s railway infrastructure projects. It evaluates current supply limitations, proposes ways to improve domestic resource management, and offers strategies to reduce reliance on imports while emphasizing sustainability. Methodology. The research applies Geographic Information System (GIS) modeling to analyze transportation routes for crushed stone, suggesting ways to streamline logistics. It examines the production capacities of Hungarian quarries, some producing 15,000–25,000 tons monthly, and assesses the impact of European and Hungarian regulations on material quality and availability. The potential for integrating recycled materials into the supply chain is also explored. Findings. Hungary’s domestic quarries cannot meet the high demand for railway ballast, estimated at 192,000 tons annually, leading to import reliance. GIS modeling shows optimized transportation routes could cut costs and carbon emissions. Incorporating smaller stone fractions and recycled materials could mitigate shortages, with recycled materials potentially comprising 40 % of railway ballast. Originality. By integrating geological, logistical, and regulatory insights, this paper provides novel approaches for addressing Hungary’s crushed stone supply chain challenges. The use of GIS modeling and recycled materials offers innovative solutions for reducing environmental impacts. Practical value. The findings present actionable strategies for improving Hungary’s supply chain efficiency, promoting recycling, and optimizing logistics. These solutions are applicable to Hungary and other regions facing similar infrastructure material supply challenges.