Entering the Rural Municipality of Sifton, PR 254 intersects PTH 2 (Red Coat Trail) just west of Deleau before traversing marshland to an intersection with PR 543. Shortly thereafter, it makes a sharp left turn to enter the town of Oak Lake Beach, travelling past Oak Lake Provincial Park to make a sharp right turn to follow along the coastline of Oak Lake. Now a paved two-lane highway, the highway passes by Cherry Point to an intersection with PR 255 and run concurrently with PTH 1 (Trans-Canada Highway) for a few kilometres to the town of Oak Lake, where it turns north as a gravel road to again through farmland for several kilometres to cross the Assiniboine River into the Rural Municipality of Wallace-Woodworth. Continuing through rural farmland, PR 254 makes a sharp left turn at an intersection with PR 463, before heading west through a switchback and coming to an end at an intersection with PR 259 just a few kilometres east of Virden.[1][2]
Prior to 1992, PR 254 continued for an additional 148.4 kilometres (92.2 mi) northward, following a short concurrency with PR 259 past Lenore before splitting off and following what is now Road 67N and Road 145W to Crandall. From there, it followed the entirety of what is now PR 264.[3][4]