Alberta Transportation has long-term plans to upgrade the entire length of Highway 3 to a freeway, requiring major bypasses of Fort Macleod and Lethbridge.
 The proposed route for the Lethbridge bypass would split from Highway 3 west of Coalhurst, running north past the town to a new interchange at Highway 25.
It would continue east across the Oldman River on new bridges, bypassing Lethbridge to reach a newly extended Highway 4 (temporarily designated as Highway 4X) northeast of Lethbridge.
 It would rejoin the existing highway east of Chin.
 A freeway upgrade of Crowsnest Trail was considered, but would require extensive reconstruction and demolition within the corridor through Lethbridge, and twinning of the existing bridge across the Oldman River.
The city of Lethbridge expressed their disapproval of this alignment, eliminating it early in the study process.

A functional planning study was completed in 2008 to identify the optimal alignment for the Fort Macleod bypass.
The preferred alignment has the new Highway 3, temporarily designated as Highway 3X, splitting southeast from the existing Highway 3, west of the intersection with Highway 810.
 It would meet a newly extended Highway 2 at an interchange southwest of Fort Macleod before continuing to a second interchange with the existing two-lane section of Highway 2 between Fort Macleod and Cardston.
 Stage 1 of the project would include only the Highway 2 bypass, with the extension to Highway 3 west of Highway 810 completed in Stage 2.
 A Medicine Hat bypass of the Trans-Canada Highway (Highway 1) is also proposed, which would involve the construction of a large interchange with directional flyovers at Highway 3 and the newly realigned Highway 1 southwest of Medicine Hat.

A 2004 study assessed the reduction of accesses to Highways 3 and 36 in Taber as a stopgap measure until a bypass of the town is constructed.
Highway 3 currently has a speed limit of 50 km/h (31 mph) and seven at-grade intersections in Taber.
 In April 2008, Alberta Transportation published a study analyzing twinning and potential changes to the alignments of Highways 3 and 6 in the vicinity of Pincher Creek, including the construction of a diamond interchange at Highway 6.
 Residents who could be affected by the changed routes were consulted as part of the study.

In 2010, a study plotted the routing of a bypass to the north of Seven Persons with plans for a diamond interchange at Highway 887.
 A 2013 study identified the preferred alignment for a freeway bypass of Burdett and Bow Island, likely to be operated as a divided expressway until the freeway is completed long-term.
Both towns would be bypassed to the south, with an interchange constructed at Highway 879.

On July 2, 2020, Jason Kenney announced a $150 million plan to twin a 46-kilometre (29 mi) section of Highway 3 from Taber to Burdett, with construction planned to begin in 2021.
Alberta Transportation has long-term plans to upgrade the entire length of Highway 3 to a freeway, requiring major bypasses of Fort Macleod and Lethbridge.  The proposed route for the Lethbridge bypass would split from Highway 3 west of Coalhurst, running north past the town to a new interchange at Highway 25. It would continue east across the Oldman River on new bridges, bypassing Lethbridge to reach a newly extended Highway 4 (temporarily designated as Highway 4X) northeast of Lethbridge.  It would rejoin the existing highway east of Chin.  A freeway upgrade of Crowsnest Trail was considered, but would require extensive reconstruction and demolition within the corridor through Lethbridge, and twinning of the existing bridge across the Oldman River. The city of Lethbridge expressed their disapproval of this alignment, eliminating it early in the study process.
A functional planning study was completed in 2008 to identify the optimal alignment for the Fort Macleod bypass. The preferred alignment has the new Highway 3, temporarily designated as Highway 3X, splitting southeast from the existing Highway 3, west of the intersection with Highway 810.  It would meet a newly extended Highway 2 at an interchange southwest of Fort Macleod before continuing to a second interchange with the existing two-lane section of Highway 2 between Fort Macleod and Cardston.  Stage 1 of the project would include only the Highway 2 bypass, with the extension to Highway 3 west of Highway 810 completed in Stage 2.  A Medicine Hat bypass of the Trans-Canada Highway (Highway 1) is also proposed, which would involve the construction of a large interchange with directional flyovers at Highway 3 and the newly realigned Highway 1 southwest of Medicine Hat.
A 2004 study assessed the reduction of accesses to Highways 3 and 36 in Taber as a stopgap measure until a bypass of the town is constructed. Highway 3 currently has a speed limit of 50 km/h (31 mph) and seven at-grade intersections in Taber.  In April 2008, Alberta Transportation published a study analyzing twinning and potential changes to the alignments of Highways 3 and 6 in the vicinity of Pincher Creek, including the construction of a diamond interchange at Highway 6.  Residents who could be affected by the changed routes were consulted as part of the study.
In 2010, a study plotted the routing of a bypass to the north of Seven Persons with plans for a diamond interchange at Highway 887.  A 2013 study identified the preferred alignment for a freeway bypass of Burdett and Bow Island, likely to be operated as a divided expressway until the freeway is completed long-term. Both towns would be bypassed to the south, with an interchange constructed at Highway 879.
On July 2, 2020, Jason Kenney announced a $150 million plan to twin a 46-kilometre (29 mi) section of Highway 3 from Taber to Burdett, with construction planned to begin in 2021.
Alberta Highway 3