NY 173 continues on into the town of Manlius, where the homes gradually return as the highway enters the village of Manlius. Inside the village limits, the route becomes surrounded by homes once again as it crosses over Limestone Creek and enters the village's business district. Here, it intersects and briefly overlaps NY 92 for roughly between Fayette and Washington Streets. At Washington Street, NY 92 turns to the southeast towards Cazenovia while NY 173 continues northeastward out of the village. Now back in the surrounding town of Manlius, NY 173 passes south of Fayetteville–Manlius High School before entering another rural area near a point known as Eagle Village. The route continues northeast from there into Madison County.