MD 267, which follows the path of the Old Post Road between Baltimore and Philadelphia, was constructed as a modern highway along that main line in 1915.

The highway was bypassed by what is now MD 7 in 1921 to avoid a pair of dangerous bridges across what is now Amtrak's Northeast Corridor railroad line.

The state highway heads east as two-lane undivided Baltimore Street, which immediately crosses over Amtrak's Northeast Corridor railroad line and enters the town of Charlestown.

After passing south of Charlestown Elementary School, the state highway turns north onto Cecil Street and crosses Red Rum Run.

[14] A portion of the bypassed highway east of Charlestown was conveyed from the state to the adjacent property owners in 1974.