The road then heads out through Morton-On-Swale, Ainderby Steeple and into Northallerton where it first meets the A167 and runs in tandem as the A167 through Northallerton. The road crosses two adjacent railways in the town; the first is a gated crossing on the freight lines to and from Teesside, and the second is under the railway station at Northallerton on the East Coast Main Line. The road carries on eastwards meeting the A168 and loops east then northwards around the town centre before it leaves the A167/A168 and heads north out of the town.