State Route 263 is a short north–south highway in Smith County, Tennessee. The road begins in Carthage and ends west of Defeated. The current length is 5.12 mi (8.2 km).

The highway begins at an intersection with SR-25 in Carthage. The highway goes north and over steep and rugged terrain as it passes by Cordell Hull Dam and Lake. After passing the dam SR-263 passes an overlook of the lake and then winds to its northern terminus on SR-85.