Like the Midland Highway, it connects the major cities of Hobart and Launceston – however it takes a different route, via the north-eastern and eastern coasts of the state.

The Highway also acts as a major commuter road to Hobart residents living on the eastern side of the Derwent River.

The first section of the new Highway between Rosny Hill Road and Mornington opened in 1974 as it exists today and continued to the airport as three lanes in its current alignment.

In 2012, Department of Infrastructure, Energy and Resources progressively installed variable speed limit signage between the airport and Hobart, citing the increased crashed rate on the road due to traffic and weather on the Meehan Range.

The Department of Infrastructure, Energy and Resources has outlined several concepts for the upgrading of the Eastern Outlet portion of the Tasman Highway – Both short and long term.

In places, the eastern coastal portion of the highway runs just metres from the Tasman Sea, making it the easternmost A road in Tasmania.

Prior to 1990, there was no coastal route between Falmouth and the Chain of Lagoons – one had to travel into and out of St Marys, both roads being steep grades.