After crossing the Lehigh River, PA 940 enters Carbon County and the borough of East Side. After crossing the river, the route makes a turn to the north to become River Street, then curves to the east to become State Street, heading through wooded residential areas. The road continues east through forested areas with occasional homes and businesses. At the eastern border of East Side, PA 940 intersects the western terminus of PA 534, which provides access to Hickory Run State Park. Past this intersection, the route enters Kidder Township and becomes an unnamed road, heading through dense forests in the Pocono Mountains region, passing to the south of a residential development. The road heads into business areas and comes to a junction with I-80 to the south and I-476 (Pennsylvania Turnpike Northeast Extension) at the Pocono interchange to the north at two trumpet interchanges that meet at PA 940 with traffic lights. From here, the route heads northeast and passes under I-476, heading into forests and passing through the community of Leonardsville, with the Pocono Mountain Lake Estates residential development to the northwest. PA 940 curves east and continues through forested land as it passes to the south of the Jack Frost Ski Resort and Jack Frost National Golf Club and comes to an intersection with Jack Frost Mountain Road/Moseywood Road, with Jack Frost Mountain Road heading north to the ski resort and golf course and Moseywood Road heading south as a private toll road to provide access to the community of Lake Harmony. Farther east, the road curves northeast and comes to a bridge over Tobyhanna Creek.