After crossing the Tobyhanna Creek, PA 940 enters Tobyhanna Township in Monroe County. The route passes through forests with some homes and businesses and reaches the community of Blakeslee, where it crosses PA 115 in a commercial area. Past this intersection, the road heads through forested areas and residential development, passing to the southeast of the Green Wood Acres private development before heading through the community of Camelot Forest, where it passes near homes and a few businesses. PA 940 continues through forests with some homes and businesses, passing to the southeast of the Blakeslee Estates and Forest Glen developments and to the northwest of the Pocono Lake Preserve development. In the community of Locust Lakes Village, the road bends to the east and continues through dense forest with some homes, passing to the north of the Wagners Forest Park private development. Farther east, the route turns southeast and crosses Tobyhanna Creek to the north of Pocono Lake. PA 940 curves to the northeast and reaches the community of Pocono Pines, where it comes to an intersection with the southern terminus of PA 423. Past this intersection, the road runs along the southern shore of Lake Naomi as it continues through a mix of forests and homes. The route continues through rural land with residential development and passes to the south of Stillwater Lake. PA 940 curves southeast and runs near a few homes and businesses before it widens to a four-lane divided highway and comes to an interchange with I-380 at exit 3.