At least 2500 heavy vehicles will be diverted from Muswellbrook's town centre once work on the $381 million bypass is complete.
The project is powering ahead, with early work well under way with a refined design that is expected to make journeys safer, move freight faster and result in better outcomes for the community.
The bypass travels through the Upper Hunter and, once complete, will provide a free-flowing 100kmh alternative for some of the 20,000 vehicles that travel through the heart of Muswellbrook every day.
NSW Minister for Roads Jenny Aitchison said the Muswellbrook Bypass was one of the most significant projects under way in the Upper Hunter.
"It will take 20,000 vehicles out of the town centre, making local streets safer while giving freight operators a faster, more reliable route," she said.
Ms Aitchison said the state government had also reclassified Wybong Road and Bengalla Link Road as state roads, a request that had long been on the list of Muswellbrook Shire Council.
The reclassification means the NSW government will take responsibility for maintenance, reducing costs for Muswellbrook Shire Council.
The project is jointly funded with a $304.8 million contribution from the federal government and $76.2 million from the state government.
Changes to the design include a safer intersection at Milpera Drive, improved northern and southern connections, better local road access and a dedicated U-turn facility on the New England Highway north of the project.
The updated design also reduces the impact of floods, improves traffic movements and minimises the need for property acquisition.
Federal Member for Hunter Dan Repacholi said that, for a long time, the Muswellbrook community were just told about a bypass, but now they could see it happening.
"We are getting closer to having heavy traffic flowing away from the town centre, which will make our local streets safer and quieter, and give locals their community back," Mr Repacholi said.
The project is expected to support 720 jobs during construction.
Early works are progressing, with the Aboriginal cultural heritage salvage program completed in late 2025.
Utilities are being relocated, and dynamic compaction work is under way on a section of the alignment crossing a backfilled open-cut mine ahead of major construction.
Upper Hunter Labor spokeswoman Emily Suuval said she had seen first hand what 20,000 vehicles "rattling through Muswellbrook" did to the town.
"This bypass finally takes that pressure off," she said.
The project is moving closer to major construction, with shortlisted applicants progressed to the request for tender stage.
The project has been fast-tracked with major construction expected to start in 2027.
