The 1.6km long route, which will run from Earlston to Sorrowlessfield, will take around 12 weeks to complete.
Trunk road operator Amey has been consulted on the plans, with Sustrans Scotland providing the £360,000 funding for the project.
Cllr Gordon Edgar said: "I am delighted this work is now getting underway, which will encourage more people to jump on their bike or pull on their walking shoes and get active.
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"Sustrans Scotland specifically provides funding to ensure people across the country have access to safe walking and cycling routes, which this new shared path will do.
"There will inevitably be some disruption during the works for motorists, and we would advise motorists using the A68 regularly to give themselves a bit more time for their journeys."
Local Cllrs Kevin Drum, Tom Miers and David Parker stated: "This cycleway/footway will provide local residents and visitors with a great facility which will allow them to link into the local paths network that has been developed by the Earlston Paths Group, thereby encouraging more people to get active and providing more opportunities for people to visit the local area."
(LM/MH)
