The highway connects the Manawatū District's chief town, Feilding, to the New Zealand state highway network and forms an alternative route to SH 1 and SH 3 between the North Island Volcanic Plateau and Palmerston North.

The route then exits the valley and heads via Rewa, Waituna West, and Beaconsfield villages to Cheltenham, where it meets Kimbolton Road at a three-way junction shortly after crossing the Kiwitea Stream.

From Cheltenham, the route turns south-west onto Kimbolton Road, reaching Feilding shortly after again crossing the Kiwitea Stream; it crosses the North Island Main Trunk railway then turns left at a roundabout in the central business district and parallels the railway line for a short distance along Aorangi Street and Waughs Road (crossing the Oroua River).

It then leaves Waughs Road and travels south-west along Camerons Line and south-east along Milson Line, before turning south-west along Kairanga-Bunnythorpe Road.

SH 54 previously began further north at Mangaweka, leaving SH 1 on Ruahine Road and travelling via Rangiwahia to Kimbolton, where it travelled along Kimbolton Road to Cheltenham before continuing along its current route to Feilding and beyond.