Following this intersection, the route briefly forms the border between Caldwell to the south and West Caldwell to the north before fully entering Caldwell. In Caldwell, CR 506 heads southeast into the commercial downtown and intersects CR 631 before meeting CR 527. At this point, CR 527 forms a concurrency with CR 506 and the road makes a turn to the east out of the downtown through more commercial development. The two routes split before CR 506 enters North Caldwell. The road briefly runs through North Caldwell, intersection CR 673 before it comes into Verona. In Verona, the road passes more businesses and has junctions with CR 637, CR 639, and CR 636. Before leaving Verona, Route 23 heads north from the northern terminus of CR 577 at CR 506. After this intersection, CR 506 continues into Montclair and makes a turn to the south into residential areas. After a curve to the southeast, the route enters downtown Montclair and intersects CR 621 and CR 623/CR 668. The road crosses New Jersey Transit’s Montclair-Boonton Line near the Bay Street station before coming into Glen Ridge. In Glen Ridge, CR 506 splits from Bloomfield Avenue, which continues southeast as CR 506 Spur.