Running for roughly 15 miles (24 km) in a general northwest-southeast direction, it connects the towns of Dillsboro and Rising Sun.

The road serves as the eastern terminus of its primary route, Indiana 62 just east of Dillsboro.

Both the approach and departure of the valley are fairly hazardous, with sharp curves and steep dropoffs.

The original routing started at US 50 in Dillsboro and ran southeast to SR 56 in Rising Sun much as it does today.

[4][5] The last major change to SR 262 happen between 1969 and 1970 and it was a short addition north to the new four-lane US 50 in Dillsboro.