The route continues north into Chester Township, Morris County. In Chester Township, US 206 passes through forested areas, with the northbound direction briefly gaining a second lane. As the road comes into Chester Borough, it widens to four lanes and passes shopping areas including the Streets of Chester. In the center of Chester, the route crosses CR 513. Past this intersection, US 206 continues into woodland development, with the northbound direction narrowing back into one lane as the route heads back into Chester Township. The road narrows back to two total lanes as it enters more rural surroundings, coming into Mount Olive Township. Further north, residential development near the road starts to increase. As US 206 reaches an intersection with CR 613, the surroundings becomes commercial before the route passes under Dover and Rockaway River Railroad's High Bridge Branch. After this area, the road turns north-northeast and runs through forested areas as a three lane road with two northbound lanes and one southbound lane, eventually entering Roxbury Township.