The route's western terminus is at an intersection with Maryland Route 353 (MD 353) and DE/MD 54 at the Maryland border south of Gumboro and its eastern terminus is at a dead end on the Atlantic Ocean in Bethany Beach, even though signage ends at the DE 1 intersection.

The route passes through rural areas of southeastern Sussex County along with the communities of Dagsboro, Millville, Ocean View and Bethany Beach.

[3][4] In Shaft Ox Corner, DE 26 splits from Millsboro Highway by turning east onto Nine Foot Road.

The route continues east through rural land, crossing Whartons Branch twice and Pepper Creek before reaching an intersection with US 113.

Past this intersection, the road becomes Clayton Street and enters the town of Dagsboro, passing homes and businesses and crossing the Delmarva Central Railroad's Indian River Subdivision line at-grade.

[3][4] The section of DE 26 east of US 113 in Dagsboro serves as a main route to Bethany Beach and sees congestion in the summer months.

[8] The route was upgraded to a state highway between present-day US 113 and Dagsboro and from Millville to just west of the Assawoman Canal by 1924.