NY 40 crosses into the town of Schaghticoke, where it gains the Speigletown Road moniker. Through the town of Schaghitcoke, the route remains the two-lane residential road it was through Lansingburgh, reaching a junction with CR 126 (Fogarty Road). At the junction with CR 126, NY 40 turns northward, drops the moniker of Speigletown Road and changes into a much more rural roadway. Passing some residences as it winds northward, the route meets the junction with CR 122 as it enters the populated hamlet of Grant Hollow. Bypassing the center of Grant Hollow, NY 40 soon reaches the hamlet of Melrose, where it meets with the junction with CR 117 (Melrose–Valley Falls Road).