Upon entering Sullivan County, NY 97 enters the hamlet of Mongaup, where it crosses over the Mongaup River. Now in the town of Lumberland, NY 97 soon bends to the west, running alongside the Delaware River, passing through the hamlet of Knight's Eddy before bending northwest. After another large bend to the southwest once again, NY 97 enters the hamlet of Pond Eddy. In Pond Eddy, NY 97 intersects with County Route 41 (CR 41), which proceeds north as High Road while crosses the nearby Pond Eddy Bridge into Shohola Township, Pennsylvania and the unsigned quadrant State Route 1011 on the opposite shore. NY 97 remains a two-lane residential road through Pond Eddy before leaving the hamlet further to the southwest.