The limit A194 Leam Lane between Jarrow and Wardley has been reduced from the national speed limit down to 50mph.
South Tyneside Council says it acted after calls of concern from residents and on the back of accident statistics for the dual carriageway.
Figures showed that during the last five years, 32 collisions resulting in injuries have happened on the three-mile stretch between the Lindisfarne and Whitemare Pool roundabouts.
Of those, seven were classed as serious, with the remaining 25 categorised as slight.
New signs have gone up on the road alongside large temporary notices informing motorists of the change, with Northumbria Police to be asked to enforce the rule.
The council has said it will also be looking at further improvements to road markings and the central reservation barriers on the flyover above the roundabout at the Calf Close and York Avenue junction.
As it stands, it is not clear to drivers if this stretch of the A194 is one or two lanes, with the authority aiming to carry out those improvements within in the next six months.
It has already put a 40mph limit in place on a section leading to and from Lindisfarne Roundabout.
Councillor Mark Walsh, lead member for housing and transport, said the decision to drop the speed limit on Leam Lane followed on from consultation with those living in the area and discussions with the authority’s highways officers.
He said: “I hope people will see the signs and realise we have a new speed limit.
“The vast majority of drivers use a suitable speed and drive responsibly, but we might have one or two who need to be reminded about their speed.
"This means the speed limit for this area is now consistent with the rest of the borough’s dual carriageways.
"We are committed to reducing road traffic accidents in the borough and this new speed limit will help to improve road safety for both pedestrians and drivers in this area."