The Mount Ousley Interchange aims to improve safety for road users by separating light and heavy vehicles, improve travel time and efficiency for all motorists, support growing freight movements, and improve access to and from the M1 Princes Motorway and Wollongong CBD.

The Mount Ousley Interchange project is to implement a grade separation for the intersection of Mount Ousley Road and the M1 Princes Motorway at the base of Mount Ousley. The M1 Princes Motorway / Mount Ousley Road intersection is the only location on the motorway between Waterfall and Albion Park Rail where vehicles are required to make an at-grade right-turn to access the motorway. The M1 Princes Motorway is part of the National Land Transport Network (NLTN) and a key focus for the project is improving national freight efficiency and productivity given the relatively high volumes of road freight carried on this route.

At the time of evaluation, the Australian Government had committed $312 million and the NSW Government had committed $78 million to the project.