Changing to a slight east northeast heading, the highway crosses through wooded terrain with some rolling hills.

At the community of Martinville, the road reaches a four-way all-way stop intersection with MS 541.

Immediately past this intersection, state maintenance of MS 540 ends and the road is county maintained for the next 0.2 miles (0.32 km).

[3][4] Continuing east, MS 540 heads through a mix of woods and open fields passing some houses along the way.

At the community of Traxler, the road heads through more rolling hills, passes a few churches, and crosses Oakohay Creek.

[6] The first section of MS 540 formally designated as a part of the state highway system occurred in 1958.