The southern terminus of SR 261 is located at a junction with SR 273 north of Big Lake. It heads northeast from this intersection and generally follows this heading for its entire length. There are several portions of the highway that wind through the area to follow the terrain as the highway nears its northern terminus. The highway reaches its northern terminus at a junction with SR 260 within the Eagarcity limits. SR 261 travels through sparsely populated areas and does not pass through any cities or towns. It serves primarily as an access road to Big Lake, as well as general access to the White Mountains.