NC 54 follows Chapel Hill Road to the intersection of NC 49/NC 100 (Maple Avenue) in downtown Graham. NC 54 joins NC 49 north on Harden Street through downtown. The route roughly parallels I-40 to the south as it enters into the downtown area of Graham. NC 49/NC 54 turns to the northeast before intersecting NC 87 (West Elm Street). After the intersection, the road turns east and follows along a concurrency with NC 49 and NC 87. NC 87 turns off at Main Street in downtown Graham. Three blocks to the east, NC 49 exits at East Elm Street. NC 54 begins its turn southeast and crosses I-40/I-85 at its exit 148. NC 54 remains on Harden Street until it crosses the Haw River and is known from that point solely as NC 54.