SSH 21B was added to the state highway system in 1937. This route began at Jct PSH 21 in Keyport and headed south via Brownsville to East Bremerton. In 1951 a branch was added to SSH 21B beginning north of East Bremerton and heading easterly to Illahee State Park.
In 1961 SSH 21B was extended from East Bremerton to Downtown Bremerton via both bridges across Port Washington Narrows.
When the current state highway numbering system was first posted in January 1964, SSH 21B became SR 303. The branch of SSH 21B to Illahee State Park became SR 306.
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