SH 332 was originally designated on September 25, 1939 as the bridge over the Intercoastal Canal.

On September 27, 1954, the eastern terminus was extended to an intersection with the Bluewater Highway, while the western terminus was extended to FM 521 on September 29, 1954 when FM 1605 was combined with the route.

On August 15, 1989, a concurrency with SH 288 in Lake Jackson was created.

The highway continues to the east to an intersection with FM 2004 in Lake Jackson.

SH 332 reaches its eastern terminus at the Bluewater Highway in Surfside Beach.