The vertical vibration and transmission characteristics of ballast are key factors that affect the dynamic stability of railway track structures and control the settlement of ballasted beds. Therefore, the following study was conducted to explore this topic. Firstly, through an impact hammer test on a ballast sensor with embedding chip, the vertical vibration data of the ballast was accurately measured. Therefore, the vertical vibration characteristics of a single ballast can be studied. Then, the vertical vibration characteristics at different positions in the stack were obtained by embedding ballast sensors into a ballasted stack. Finally, combined with field tests, a discrete element numerical model was established, then the vibration transmission speed and diffusion angle in a ballasted stack were calculated. The results of this study show that the damping ratio of ballast particles is less than 0.1, and the natural frequency is above 1000 Hz. The damping ratio and natural frequency of ballasts are greatly affected by their shape. The damping ratio of a ballasted stack is greater than that of ballast particles, and its natural frequency is lower. This indicates that the ballasted stack has the attributes of a soft material. The vertical acceleration transmission rate of ballasts is lower at frequencies below 257.94 Hz. This shows that the vibration suppression ability of the ballasted bed is better in the lower frequency range. As the depth increases, the vertical vibration transmission speed of the ballast gradually decreases, as does the accumulated external force. In the impact hammer test of a ballasted box, the average vertical vibration transmission speed was calculated to be 0.88 mm/μs, and the ballast vibration was transmitted downward at a diffusion angle of 35.32°–54.51° from the direction of gravity.