It connects Downtown Edmonton with the mature residential neighborhoods on the city's eastern edge, as well as Refinery Row and Sherwood Park.

East of 109 Street, it passes underneath the grounds of the Alberta Legislature, through the historic neighbourhood of Rossdale, and crosses the North Saskatchewan River via the James MacDonald Bridge.

After passing through the neighbourhood Cloverdale, which provides access to Muttart Conservatory and the Edmonton Ski Club, it ascends out of the river valley.

It continues through mid-century residential neighbourhoods, and at the western of edge of Capilano Mall, the roadway splits where the main roadway turns northeast along Terrace Road while 98 Avenue continues east along the southern perimeter of Capilano Mall as a collector road.

At Anthony Henday Drive, it enters Sherwood Park and passes through its suburban commercial and retail areas.

[9][10] As the residential neighbourhoods in eastern Edmonton were developed, Terrace Road was constructed to allow for continuous movement between Highway 16A east and 98 Avenue.

In the early 1980s, the Highway 16A designation was phased out within Edmonton city limits, with the Strathcona County section remaining along Baseline Road until 1996.

[13] In the late 1990s, the City of Edmonton looked to establish an inner ring road, one proposal was designating Wayne Gretzky Drive and 50 Street as part of the eastern leg, with 98 Avenue as the connector.