The initial plans to build a highway between the two largest cities of the country were conceived in 1954 as part of the U Nu government's Pyidawtha Plan.
In 1959, the United States offered financial and technical assistance for a "preliminary engineering survey" of the highway.
The financial assistance was up to $750,000.
When the survey was completed in 1960, the Burmese government balked at the cost as too expensive.
In 1961, the US government agreed to finance another study of more economical alternatives.
The survey work began in early 1962 but was only completed in December after having been delayed by the 1962 military coup by the Union Revolutionary Council in March 1962.
The military government initially agreed to the new proposal, and authorized the design of the Yangon–Pegu stretch of the highway in March 1963.
The design plans were ready by December 1963 but were never carried out.
They fell victim to the deteriorating relations between the US and Burmese governments.

The proposed road route lay between the old Yangon-Mandalay Highway and the Pegu Yoma Mountains.
The Pegu Yoma Mountains were a strategically important location for the Communist Party of Burma.
After the expulsion of the Communists from the area in 1973, the government planned the construction of the expressway.
The government received a cement factory in Kyangin as development aid from Japan for the construction of the expressway.
However, it had to export the cement from the new factory and due to the lack of foreign exchange abroad construction was cancelled.

After the 8888 Uprising, the new military regime intensified private sector and infrastructure projects.
New cement factories and steel production facilities were built by the state and private companies.
To finance the foreign exchange, the government received in return for gas export to Thailand.
In October 2005, construction began, and on 29 December 2010, the official opening of the entire route took place.
The initial plans to build a highway between the two largest cities of the country were conceived in 1954 as part of the U Nu government's Pyidawtha Plan. In 1959, the United States offered financial and technical assistance for a "preliminary engineering survey" of the highway. The financial assistance was up to $750,000. When the survey was completed in 1960, the Burmese government balked at the cost as too expensive. In 1961, the US government agreed to finance another study of more economical alternatives. The survey work began in early 1962 but was only completed in December after having been delayed by the 1962 military coup by the Union Revolutionary Council in March 1962. The military government initially agreed to the new proposal, and authorized the design of the Yangon–Pegu stretch of the highway in March 1963. The design plans were ready by December 1963 but were never carried out. They fell victim to the deteriorating relations between the US and Burmese governments.
The proposed road route lay between the old Yangon-Mandalay Highway and the Pegu Yoma Mountains. The Pegu Yoma Mountains were a strategically important location for the Communist Party of Burma. After the expulsion of the Communists from the area in 1973, the government planned the construction of the expressway. The government received a cement factory in Kyangin as development aid from Japan for the construction of the expressway. However, it had to export the cement from the new factory and due to the lack of foreign exchange abroad construction was cancelled.
After the 8888 Uprising, the new military regime intensified private sector and infrastructure projects. New cement factories and steel production facilities were built by the state and private companies. To finance the foreign exchange, the government received in return for gas export to Thailand. In October 2005, construction began, and on 29 December 2010, the official opening of the entire route took place.
Yangon–Mandalay Expressway