At the summit of Tussey Mountain, PA 26 comes to a truck check station in both directions and a scenic overlook on the southbound side, entering Ferguson Township in Centre County. The road begins to descend the mountain, coming to a northbound runaway truck ramp before it leaves Rothrock State Forest and makes a hairpin turn to the southwest. The route turns north and reaches the base of the mountain, where it enters the Nittany Valley and heads into the residential community of Pine Grove Mills as South Water Street. PA 26 comes to an intersection with PA 45, at which point it turns east to form a concurrency with that route on East Pine Grove Road. The road soon curves northeast and passes more homes along with a few businesses. The roadway leaves Pine Grove Mills and PA 45 splits from PA 26 by turning to the northeast. PA 26 becomes West College Avenue and curves north and then northwest, heading through farmland with some residences and commercial establishments and gaining a center left-turn lane. The road heads past a mix of homes and businesses, curving north and then northeast.