In 1991, a proposal to realign PA 402 and US 209 around the village of Marshalls Creek was proposed. Originally, PA 402 ended at a junction with US 209 and US 209 Business in Marshalls Creek. Over the years, the junction and the village had become heavily congested and a bypass was the only way to relieve traffic. After numerous delays for environmental issues, PA 402's new alignment had construction begin in 2005. Construction was suspended in 2008 and abandoned as PennDOT wanted a new bypass constructed without a realignment of PA 402. The new bypass was completed in June 2012, when US 209 was realigned away from the southern terminus of PA 402, which ended at US 209 Bus. instead.