A linear economy is a traditional resource consumption model characterized by a “take-make-dispose” pattern without focusing on sustainable practices and climate change. The circular economy (CE) approach considers the entire life cycle of goods and services, aiming to minimize resource use and environmental impacts while contributing to sustainable development. It involves designing out waste and pollution and keeping high-value use for products and materials. As the construction industry generates over 35% of Europe’s waste, activating the rail sector as a key driver for advancing circular economy strategies has become essential. So, optimizing resource use and mitigating environmental and societal impacts is important. Therefore, it is important to explore how circularity aspects (e.g., repairability, reusability, recoverability) are applicable for railway systems. This paper evaluates CE in Swedish rail infrastructure. The methods used in this study consists of literature review, interview and survey. Literature review, including circular economy frameworks, indicators, developments in the rail sector, and CE standards documents, have been considered in the study. Thereafter, interview and survey have been conducted with Swedish railway experts to explore the CE in the railway system.