PA 116 crosses into the borough of Hanover in York County and continues through residential areas. The route splits from 3rd Street by heading southeast on High Street, passing homes and businesses. The road crosses a York Railway line before reaching an intersection with PA 194. At this point, PA 116 forms a concurrency with PA 194 by turning northeast onto a one-way pair that follows two-way Frederick Street eastbound and one-way Chestnut Street westbound. In the commercial center, the one-way pair crosses PA 94, with northbound PA 116/PA 194 becoming Broadway at this point. A short distance later, PA 116 splits from PA 194 by turning east onto two-way York Street and passes more homes, crossing into Penn Township. The route comes to an intersection with PA 216 and turns northeast into a mix of farmland and industry. The road crosses CSX's Hanover Subdivision railroad line in York Road, at which point it enters Heidelberg Township and becomes Hanover Road. PA 116 runs through agricultural areas with some development and woods, passing through Ambau. The route crosses the West Branch Codorus Creek into North Codorus Township and becomes York Road, passing through more rural areas with residential development, crossing another York Railway line.
