NY 296 continues northeast after CR 23, passing a local church near the junction with Peck Road. The route proceeds due north after Peck Road, quickly entering a junction with CR 14 (Goshen Street), which merges into the state highway. NY 296 winds through the Catskills past Thomas Cole Mountain. After winding down the side of the mountain, NY 296 enters the hamlet of Hensonville, located adjacent to Batavia Kill, a tributary of Schoharie Creek. Here, the route intersects with the western terminus of CR 40 (Maple Crest Road). At this junction, NY 296 turns northwest on the CR 40 right-of-way, while CR 65 (Brooksburg Road) continues north towards NY 23.