Known as Statler Boulevard, the state highway runs 2.21 miles (3.56 km) from U.S. Route 11 (US 11) north to Coalter Street within the independent city of Staunton.

SR 261 is an unsigned four-lane divided highway that provides an eastern truck bypass of downtown Staunton.

SR 261 crosses over CSX's North Mountain Subdivision and curves west to intersect SR 254 (New Hope Road), the Chesapeake Western Railway, and US 11 (Commerce Road).

US 250 Truck follows US 11 and SR 262 north and west to reconnect with US 250 northwest of Staunton.

SR 261 continues west to its northern terminus at the intersection of North Coalter Street and Edgewood Road northeast of downtown Staunton.