Minnesota State Highway 263 is a highway in southwest Minnesota, which runs from its intersection with Martin County Road 8 in Ceylon and continues north to its northern terminus at its interchange with Interstate 90 near Welcome, nine miles west of Fairmont.

The route is 11 miles (18 km) in length.

Highway 263 serves as a north–south route in southwest Minnesota between Ceylon and Interstate 90 near Welcome.

Highway 263 is also known as Main Street in Ceylon. The route follows Guide Street in Welcome.

Highway 263 was authorized on July 1, 1949.

The route was paved in 1951.

The entire route is in Martin County.