Farther southeast, the route enters Blountville, which widens to a four-lane divided highway and comes to an interchange with I-81.

The route curves south and comes to a junction with SR 126 in an commercial area west of downtown Blountville.

Past here, SR 394 leaves Blountville and winds south through wooded mountains, turning to the east.

The road runs through a retail area before it passes more woods and fields with some nearby development.

The route heads past a mix of residential development and farmland before it passes southwest of the former Exide Technologies and turns to the southeast.