SR 194 was decommissioned in 1927 leaving the route that later became SR 500 as a county road. The commissioning of SR 500 took place in 1937, and replaced a county road west of Payne, while east of Payne it replaced the former route of SR 194. The highway had a gravel surface between the Indiana state line and SR 49, while between SR 49 and its eastern terminus at SR 111 it was paved.
SR 194 was decommissioned in 1927, leaving the route that later became SR 500 as a county road. In 1937, SR 500 was commissioned and replaced a county road west of Payne, while east of Payne it took over the former route of SR 194. The highway had a gravel surface between the Indiana state line and SR 49, and was paved between SR 49 and its eastern terminus at SR 111.