The route is a spur off of SR 127 that serves Pokagon State Park.
Starting from the main entrance into Pokagon State Park, SR 727 travels due east through a heavily forested area, which includes the Potawatomi Nature Preserve as well as two crossings of Pokagon's Trail 3.
[2] SR 727 was first authorized in 1934 between Ashley and Pleasant Lake, along Steuben county road 400W and 500S.
[7][8] The designation was extended west of Ashley to SR 327, south of Helmer, in 1940.
[11][12] The highway commission completed a major rerouting of SR 727 around 1968 when it was moved to its current location.