The route has a speed limit of 60 miles per hour (97 km/h) for its entire length.

[1] State Highway 54 was authorized in 1920 from Elbow Lake to Herman.

[1] In 1934, the east-west portion of this route near Herman became part of State Highway 27.

[4] Highway 54 was turned back to Grant County on June 1, 2020 due to low traffic volumes and its status as a major collector, which functions more as a county state-aid highway or county road.

In exchange, Minnesota State Highway 78 was extended south to Erdahl via CSAH 10.