Prior to the initial construction of the freeway in the 1960s, inbound and outbound road traffic between Adelaide and south-eastern South Australia or Victoria used a two-lane highway originally built in the early part of the 20th century.
With growth in Adelaide's population issues of congestion and safety mandated reconstruction.
Studies began in 1962 for a freeway commencing from Crafers, that endpoint selected arguably due to the massive expenditure required with the precedent upgrade of the Mount Barker Road.

Road construction began in 1965 from Crafers and the first stage of eastbound traffic lanes were opened in 1967, the first westbound section in 1969.
The freeway was opened in stages as construction progressed.
The final section bypassing the town of Murray Bridge and connecting to the new Swanport Bridge over the River Murray opened in 1979, providing an alternative to the historic bridge in the town for through traffic.

The Adelaide–Crafers Highway extension came as a much-needed upgrade and replacement to the previous link road, the Mount Barker Road, which had been contoured to the Adelaide Hills, giving rise to many steep turns, ascending a tortuous route.
The tightest hairpin turn on the Mount Barker Road was infamous as the Devil's Elbow, often the site of car and semi-trailer accidents.

On 16 May 1995, Prime Minister Paul Keating announced the construction of the new Adelaide-Crafers section.
The Heysen Tunnels, named after well-known South Australian artist and benefactor Hans Heysen, were completed in 1998.
Construction was completed early 2000 and on 5 March 2000 Prime Minister John Howard opened the new road.
It was the largest South Australian road project at that time, costing a total of A$151 million, wholly funded by the Australian Federal Government.

An additional exit was built at Monarto around 1999 to service an expanding commercial zone and Monarto Zoo in the area.
Another exit was announced in 2014 at Bald Hills Road 4 km southeast of the Mount Barker interchange to service growing housing estates in southern Mount Barker and Nairne.
The contract was announced on 1 April 2015 that Bardavcol would commence construction in May 2015, with the interchange including entry and exit ramps in both directions.
The $27M project was funded $16M by the Australian government, $8M from South Australia and $3M from Mount Barker district council.
The new interchange opened on 15 August 2016.

The Freeway bypasses many towns previously along the Princes Highway including
Eagle On The Hill
Crafers
Stirling
Aldgate
Bridgewater
Verdun
Hahndorf
Mount Barker
Littlehampton
Nairne
Kanmantoo
Callington
Monarto
Murray Bridge
Prior to the initial construction of the freeway in the 1960s, inbound and outbound road traffic between Adelaide and south-eastern South Australia or Victoria used a two-lane highway originally built in the early part of the 20th century. With growth in Adelaide's population issues of congestion and safety mandated reconstruction. Studies began in 1962 for a freeway commencing from Crafers, that endpoint selected arguably due to the massive expenditure required with the precedent upgrade of the Mount Barker Road.
Road construction began in 1965 from Crafers and the first stage of eastbound traffic lanes were opened in 1967, the first westbound section in 1969. The freeway was opened in stages as construction progressed. The final section bypassing the town of Murray Bridge and connecting to the new Swanport Bridge over the River Murray opened in 1979, providing an alternative to the historic bridge in the town for through traffic.
The Adelaide–Crafers Highway extension came as a much-needed upgrade and replacement to the previous link road, the Mount Barker Road, which had been contoured to the Adelaide Hills, giving rise to many steep turns, ascending a tortuous route. The tightest hairpin turn on the Mount Barker Road was infamous as the Devil's Elbow, often the site of car and semi-trailer accidents.
On 16 May 1995, Prime Minister Paul Keating announced the construction of the new Adelaide-Crafers section. The Heysen Tunnels, named after well-known South Australian artist and benefactor Hans Heysen, were completed in 1998. Construction was completed early 2000 and on 5 March 2000 Prime Minister John Howard opened the new road. It was the largest South Australian road project at that time, costing a total of A$151 million, wholly funded by the Australian Federal Government.
An additional exit was built at Monarto around 1999 to service an expanding commercial zone and Monarto Zoo in the area. Another exit was announced in 2014 at Bald Hills Road 4 km southeast of the Mount Barker interchange to service growing housing estates in southern Mount Barker and Nairne. The contract was announced on 1 April 2015 that Bardavcol would commence construction in May 2015, with the interchange including entry and exit ramps in both directions. The $27M project was funded $16M by the Australian government, $8M from South Australia and $3M from Mount Barker district council. The new interchange opened on 15 August 2016.
The Freeway bypasses many towns previously along the Princes Highway including
Eagle On The Hill
Crafers
Stirling
Aldgate
Bridgewater
Verdun
Hahndorf
Mount Barker
Littlehampton
Nairne
Kanmantoo
Callington
Monarto
Murray Bridge
South Eastern Freeway