SH 46 was originally designated on October 20, 1919 as a route from New Braunfels north to Johnson City.

[2] On July 13, 1925, the route had been shortened, with the section north of Spring Branch transferred to SH 108.

[6] On October 26, 1967, the highway was relocated in New Braunfels to the east along the alignment of Loop 337, but still had an eastern terminus at US 81.

SH 46 leaves the city limits of Boerne to the east and follows an east-northeast routing through rural Kendall County.

In Bulverde, SH 46 intersects with US 281 at a diamond interchange, which provides access to San Antonio to the south.

The highway continues to the east-southeast, passing several farm-to-market roads with FM 3159 and RM 2722 providing access to Canyon Lake.

[16] The highway begins at an interchange with SH 46/Loop 337 and runs in a southward direction along Walnut Avenue.

Just outside of downtown, the highway merges onto Seguin Avenue and runs through the central business district of New Braunfels.

SH 46-C runs along a traffic circle, known locally as Main Plaza, where the highway intersects San Antonio Street.