SH 294 begins at an intersection with US 79/US 84 in far southwestern Anderson County and proceeds to the east through agricultural and forested areas.

[4] Just southeast of town, SH 294 splits from US 287/SH 19 and continues to the east through the southern portion of Anderson County.

[5] The route then crosses the Neches River into Cherokee County.

[6] It then continues through the southwest section of the county before reaching its terminus at SH 21 in Alto.

On September 26, 1939, SH 7 was rerouted across a number of already-built routes further to the south.