 Past the exit, NY 264 turns northeastward away from the freeway to serve less developed areas of Schroeppel. The highway winds its way past a mixture of cultivated fields and forested areas, passing the south end of CR 54 and crossing over Sixmile Creek on its way to a small cluster of homes near the northern town line. Here, NY 264 connects to Godfrey Road, a local highway leading southeast to CR 54 in the hamlet of Pennellville. The route climbs a hill as it crosses into the town of Palermo and the hamlet of Suttons Corner, located at the junction of NY 264 and NY 49. From Suttons Corner, the route heads generally north-northeastward across along another sparsely populated stretch to a junction with NY 3 south of the hamlet of Palermo. NY 264 ends here while NY 3 continues north on NY 264's right-of-way toward Palermo.
