The southern terminus of the highway is at an intersection with SR 182 in the south-central part of Orange Beach.

The northern terminus of the highway is at an intersection with SR 180 in the north-central part of Orange Beach.

Farther north, SR 161 travels through housing subdivisions before continuing into wooded areas.

The highway passes businesses prior to reaching its northern terminus, an intersection with SR 180 in the north-central part of Orange Beach.

It serves as an alternate route for motorists heading north from the beaches of eastern Baldwin County to avoid traffic congestion in Gulf Shores.