State Route 263 (SR 263) is a short north–south highway in Smith County, Tennessee.

The road begins in Carthage and ends west of Defeated.

The highway goes northward over steep and rugged terrain as it passes by Cordell Hull Dam and Lake.

After passing the dam, SR 263 passes an overlook of the lake and then winds north-northeastward to its northern terminus on SR 85.

[2] The entire route is in Smith County.