By 1939, the section between Cross Plains and Rising Star was transferred to SH 36.

On March 22, 1960, SH 206 was extended northeast from Cross Plains to FM 569.

The route was extended into Cisco on August 28, 1991, replacing US 80 when it was decommissioned west of Dallas.

Heading towards the north through Coleman, the highway continues to a junction with SH 153.

It runs concurrently with SH 153 briefly before it continues to the north to an intersection with US 84 and US 283.

Heading towards the northeast through Cross Plains, the highway continues to a junction with FM 374.