Vernacular architecture embodies a plurality of constraints from places where it belongs, in which the use of local materials and techniques is one of the main features. When compared with industrially-produced materials, vernacular materials have low environmental impacts, being an alternative for sustainable construction. The increasing use of new industrially-produced and standardized materials led to the homog-enization of the different used construction approaches, and spawned a universal architecture that in many cases is out of the environment context and is very dependent on energy and other resources. This paper ad-dresses the relation between Portuguese vernacular architecture and locally sourced materials, relating them with the territory lithology, agricultural crops and the climate. To assess the contribution of these materials for sustainability, a comparison with industrial materials at level of environmental indicators was established. This paper highlights the advantages of using local materials and techniques as a factor of local socio-economic development.