This 2.5-mile (4.0 km) section of SR 163 is built to parkway standards, featuring a wide, grassy median with trees, four through traffic lanes, and several very sharp curves, also passing under the Cabrillo Bridge.

The freeway then heads north to and merges with I-15 near Miramar, where the southern terminus of the high-occupancy toll (HOT) lanes of I-15 are located.

[9] The southernmost portion of the highway, running through Balboa Park, began construction in 1942 and opened in 1948 as part of US 395; it was the first freeway in San Diego County and one of the first in California.

[13] On May 17, 1995, former US soldier and plumber Shawn Nelson stole a tank from the National Guard armory and went on a destructive rampage throughout San Diego.

Driving onto SR 163, the tank was eventually disabled when it became stuck on a traffic barrier, where Nelson was shot and killed by San Diego police.