US 113 next comes to the town of Dagsboro, which is named for French and Indian War and American Revolutionary War general and major Sussex County landowner John Dagworthy. The highway crosses Pepper Creek and intersects DE 26 (Clayton Street/Nine Foot Road), which heads east to Bethany Beach, while it passes through the western fringe of the town. North of Dagsboro, US 113 crosses Whartons Branch before it intersects DE 20 (Dagsboro Road); the U.S. Highway and state highway run concurrently through the town of Millsboro, which was named for the cluster of mills around the head of navigation of the Indian River. The highways cross Iron Branch before they intersect DE 24/DE 30 (Washington Street/Laurel Road) west of the town center. After crossing Betts Pond, DE 20 splits to the northwest as Hardscrabble Road as US 113 itself turns northwest toward the hamlet of Stockley. North of Stockley, US 113 intersects DE 24 Alternate (Speedway Road) adjacent to Georgetown Speedway and passes west of the Sussex Correctional Institution.