NY 261 continues northeast past the Lake Ontario State Parkway, serving a line of homes overlooking Braddock Bay to the southeast, and eventually Lake Ontario to the east. Until January 2017, state maintenance of NY 261 ceased just northeast of the junction with the parkway, at which point it became county-maintained as the unsigned CR 272. Roughly northeast of the Lake Ontario Parkway, NY 261 reached the lakeside hamlet of Manitou Beach. The route turned southward before reaching the lake shore, however; instead, it parallels the shoreline for before terminating at an isolated dead end south of the hamlet.