From its western terminus, the route loops from US 78/SR 8 into downtown Temple, briefly becoming concurrent with SR 113, then exits downtown to meet its eastern terminus, again at US 78/SR 8.

SR 274 begins at an intersection with US 78/SR 8 in the central part of Temple.

The route travels to the north-northeast along James Street.

At Sage Street, in downtown Temple, it turns to the southeast, paralleling some Norfolk Southern Railway tracks.

SR 274 is not part of the National Highway System, a system of roadways important to the nation's economy, defense, and mobility.