Once in Manchester-by-the-Sea, Route 127 acts as the main route through town, passing the downtown area and just north of the Manchester station. It crosses the tracks one more time (next to Sweeney Park) as it heads into Gloucester. Once in Gloucester, the route passes the Magnolia section of town before passing Ravenswood Park and Stage Fort Park, site of a large marker commemorating the city's founding. Just before crossing Blynman Canal, Route 127 meets the end of Route 133. As it passes the Western Harbor, Route 127 passes the Gloucester Fisherman's Memorial as well as passing just north of several of the city's major fishing companies (including Gorton's of Gloucester).