It is 5.74 miles (9.24 km) long and runs north–south, entirely within Yamhill County.

OR 154 was established in 2002 as part of Oregon's project to assign route numbers to highways that previously were not assigned.

Also, Yamhill County signs the portion of Oregon Route 153 east of the junction with OR 154 as "Lafayette Highway," as well.

It heads south to an intersection with OR 153 near Hopewell, where it ends.

OR 154 was assigned to the undesignated part of the Lafayette Highway in 2002.