Macquarie Pass is set to reopen in a few weeks, once work to repair major damage is finished.
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The Illawarra Highway was closed in both directions between Yellow Rock Road and Jamberoo Mountain Road in March, after heavy downpours resulted in large cracks in the road surface and slope movement.
A Transport for NSW spokesperson said there was a "significant embankment failure" that extended about 250 metres along the road.
Repair work began in early April with the clearing of vegetation, to give crews the access needed to rebuild the embankment.
The Transport for NSW spokesperson said construction crews were on site by April 19.
The work has involved the excavation of thousands of tonnes of dirt, up to four metres deep along 250 metres.
Rock fill will be used to rebuild the embankment and road formation, before the new road pavement is constructed.
"Transport crews have been working hard to reconstruct the embankment and road formation to restore safe access for motorists," the Transport for NSW spokesperson said.
The spokesperson said it was expected the road would reopen to all traffic later this month, but warned this could be affected by further wet weather or unforeseen issues.
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