Its present length was formerly a part of old US 27, whose designation was moved to the new Interstate 69 (I–69) when the freeway was completed in northern Indiana in 1967.

It functions in part to connect SR 120 to I–69 and, south of its interchange with I–69, it provides a local thoroughfare into Angola.

The last several miles of SR 127 north of Angola's town square are crowded with fast-food franchises and other national chains.

At 200 North the road becomes a two–lane rural highway, passing farmland and woodlands.

[6][7] In late 1968 or early 1969 the road was extended south to US 20 in Angola, along what had been US 27 before it was diverted to Interstate 69.