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From the south, the highway is in the United States state of Alaska for 24 km (15 miles) through the Coast Mountains. It runs through the Canadian province of British Columbia for 56 km (35 miles), at which point it enters the Yukon Territory of Canada. It reaches the Alaska Highway and shares a short section with that highway, after which it diverges and runs to Dawson City. The highway is 712 km (443 miles) long.
In the Yukon, the Klondike Highway is marked as Yukon Route 2.
Construction of the highway began in the 1950s and was completed to Skagway in 1978, although many parts of it were in use before 1978.