Paralleling NY 17, NY 52 continues south a short distance through an undeveloped area outside the village, then turns southeast to its actual exit with the freeway. At a junction with CR 175 (Old Route 17). NY 52 passes through a commercial strip mall section of Liberty, south of the Grossinger Country Club. Now on the Catskill Plateau, at elevations over above sea level, the route becomes rural again. Two and a half miles from Route 17 it bends northeast into the town of Fallsburg near a junction with CR 51 (Hilldale Road). Turning southeast again, NY 52 soon reaches a junction with CR 105 (Divine Corners Road). Turning southeast further, the route passes the northern entrance road Sullivan County Community College, the highest elevation on its entire length at , and then descends to the hamlet of Loch Sheldrake.