 During the 1930s, the route was paved between Mount Pocono and PA 490 (now PA 423), along the PA 90 concurrency, and for a distance to the south of Varden while the portions between south of Sterling and PA 90 and from PA 90 to south of Varden were improved but unpaved.The sections of PA 196 between PA 490 and the border of Monroe and Wayne counties, between south of Sterling and PA 90, and between PA 90 and south of Varden were paved during the 1940s while a small section north of the PA 507 intersection in Angels was improved.In 1956, PA 196 was extended south from Mount Pocono to an interchange with US 611 (later I-80) in East Stroudsburg, heading east from Mount Pocono to Paradise Valley, southeast concurrent with PA 90 between Paradise Valley and south of Analomink, and continuing southeast through the northern part of East Stroudsburg to the interchange.