The highway intersects KY 2124, along with a few more rural state highways that connect this particular area to Hawesville, the county seat of Hancock County.

It meets U.S. Route 60 (US 60) and KY 259 in the Breckinridge County seat, Hardinsburg.

The highway runs concurrently with KY 259 from the US 60 junction to downtown Hardinsburg.

KY 261 turns away to traverse mainly rural areas of northeastern Breckinridge County.

That section of the route also includes a stretch concurrent with KY 86.