It soon reaches the outskirts of the village of Saugerties, where it connects to NY 32 at a junction adjacent to the New York State Thruway (I-87). NY 32 turns east here, overlapping with NY 212 as both routes pass over the Thruway and serve the southern half of an interchange (exit 20) with the toll road. Heading away from the Thruway, NY 32 and NY 212 trend southeastward, reaching a junction with the north end of CR 31 (Kings Highway) and crossing CSX Transportation's River Subdivision rail line on their way into the village limits. As Ulster Avenue, the highway passes several commercial blocks before intersecting Market Street near the center of Saugerties. At this point, the two routes head south for a block on Market Street and east for another block on Main Street to reach US 9W (Partition Street) in the village center. NY 212 ends here while NY 32 turns south to follow US 9W southbound on Partition Street. Northbound US 9W, meanwhile, continues northeast on Main Street toward the Hudson River.