Minnesota State Highway 261 (MN 261) was a highway in McLeod County, Minnesota. It ran from Winsted to U.S. Highway 212 east of Glencoe. It was turned back to McLeod County maintenance in 1996, becoming County State-aid Highway 1.Highway 261 was known as 6th Street in Winsted, and Babcock Avenue, 180th Street, and Dairy Avenue elsewhere in the county.