The emergence of railways brought about new possibilities in people's lives, as well as in terms of political plans and actions. Railway activities began in the Balkans in the second half of the 19th century and had a significant impact on the relationships between Balkan states. This work explores the potential influence of Austro-Hungarian plans for the construction of the Sandjak Railway in the region of Bihor and the broader areas of Bijelo Polje and the Novi Pazar Sandjak, which were part of the Ottoman Empire. Austro-Hungary had expressed its ambitions in the Balkans even before the Berlin Congress, seeing the region as a bridge that could connect them to the warm Aegean Sea and further to the Middle East. The construction of the railway was one of the means by which Austro-Hungary sought to expand its influence in the Balkans. Such significant political intentions did not go unnoticed by the Ottoman Empire, which aimed to preserve its territorial integrity and possessions in that part of the Balkans. Slovene states and peoples traditionally sought protection in Russia, giving Russia an opportunity to express its own interest in exerting political influence in this part of Europe. Recognizing that Austro-Hungary was its main rival in the Balkans, Russia reached an agreement with them in 1897 to maintain the status quo. This agreement was further confirmed by the Treaty of Mürzsteg in 1903, which aimed to mutually neutralize or divide spheres of interest, with Bulgaria falling under Russian influence and Serbia under Austro-Hungarian. Austro-Hungary's primary goal was to prevent the creation of a large state in the region from the Danube to the Adriatic Sea, which would block its path eastward. As Serbia was located in that region, Austro-Hungarian propaganda was directed against it, despite traditionally good relations with the Obrenović dynasty. Austro-Hungary attempted to strengthen its political plans through the construction of a suitable railway network, which would facilitate easier and faster control of the desired territory. This led to the advocacy of the so-called “Novi Pazar Railway,” which would connect Uvac with Mitrovica. However, German Chancellor Bernhard von Bülow advised Austro-Hungarian Foreign Minister Count Agenor Romuald Gołuchowski to abandon this plan due to the unfavorable situation in Macedonia, where unrest was brewing. Austro-Hungarian diplomacy did not want to make a public and final decision on this proposal. All of the above had an impact on the population of all parts of the Novi Pazar Sandjak. The work examines how the construction of the railway would have stimulated economic development in the entire region by creating new trade routes and encouraging investment in economic sectors such as trade and agriculture. The paper also provides insights into potential changes in the demographic structure through the influx of populations from other parts of the Ottoman Empire and Austro-Hungary, which the railway would necessarily impose. Furthermore, it is essential to mention how the realization of the “Novi Pazar Railway” would have affected the ethnic and religious dynamics in the Bihor district and the broader area. The Ministry of Foreign Affairs of the Russian Empire intervened with Austrian Emperor Franz Joseph and Count Goluchowski on several occasions to abandon the plan to build the “Novi Pazar Railway,” as the Russian government maintained the same view it had expressed in 1900. Austro-Hungary eventually agreed, leaving only a political influence supported by the propaganda activities of secret services. This work serves as a foundation for further research and discussions on this topic.