In Vermont, the route extends for 176 miles (283 km) along the western side of the state as a mostly two-lane rural road, with the exception of an expressway section between Bennington and East Dorset.

US 7 is known as the Ethan Allen Highway for its entire length through the state, named after the US Revolutionary War general.

US 7 crosses the Massachusetts–Vermont state line at Pownal, from where the road heads north to Bennington as a rural two-lane highway.

Most of US 7 between East Dorset and the Canada–United States border is an undivided, uncontrolled road varying in width from two to four lanes.

[disputed – discuss] This plan was ultimately canceled, and I-89 was shifted to its current alignment, turning southeast at Burlington toward Montpelier and White River Junction.

Prior to the cancelation of the original I-89 routing, approximately 25 miles (40 km) of freeway (mostly super two with some four-lane sections) was built in the US 7 corridor between Bennington and Manchester, plus an additional seven miles (11 km) of four-lane highway between Wallingford and Rutland were completed.