The state highway provides access to downtown Lynchburg and many other historic neighborhoods of the independent city.

SR 163 continues north as Wards Road across Norfolk Southern Railway's Blue Ridge District to US 460 Business (Fort Avenue).

The state highway intersects US 221 (Oakley Avenue) and US 501 Business (Langhorne Road) and passes the historic home Centerview before crossing Norfolk Southern's Danville District rail line and becoming 5th Street.

SR 163 passes the Old City Cemetery, Pyramid Motors, and the Kentucky Hotel on its way to a roundabout with Federal Street.

SR 163 continues northeast along the northern edge of downtown Lynchburg, passing by the Western Hotel and near many more historic buildings and cultural sites in the Court House Hill-Downtown and Lower Basin historic districts in downtown Lynchburg.