It is located on the Continental Divide on the western boundary of Monarch Ski Area, 1 mile (1.6 km) west of U.S. Route 50.

Original Monarch Pass divides the watersheds of No Name Creek, a tributary of Tomichi Creek and the Gunnison River, to the west and the South Arkansas River to the east.

The new road became an important route for wagons and stagecoaches traveling from the town of South Arkansas (later named Salida) on the east side to the booming mining camps on the west side of the divide.

The road also allowed travel on to the growing city of Gunnison and points farther west.

The pass later accommodated motor vehicles, and remained an important crossing of the divide until 1922, when the state highway department realigned the road to cross the divide at a slightly lower point 1.1 miles (1.8 km) to the southeast.