Fáilte Ireland is working with the council to manage traffic around Slea Head.
Members of the Castleisland-Corca Dhuibhne Municipal District were given an update at their meeting, following a deputation from residents in Dún Chaoin.
Members of Comharchumann Dún Chaoin presented at the meeting, showing councillors traffic safety concerns around the area, in particular near the primary school.
They said in recent years there's been a huge increase in traffic and during the summer months over 800 cars and buses travel the road daily.
Principal of Scoil Dún Chaoin Malachaí Mac Amhlaoibh says the March 2020 COVID lockdown was the first time that the local community had the road to themselves.
He says, while tourism is the primary economic driver in the area, Dún Chaoin residents deserve to feel safe while travelling local roads.
Councillor Breandan Fitzgerald, who brought the deputation, echoed their comments, adding that the council has a duty to make the area safer.
In response, the council said the local area is the first in the county to have submitted an appeal of the local speed limit, and Fáilte Ireland is currently investigating traffic flow and volume around Slea Head.
It adds that, while funding will be needed to improve the road network, land acquisition will form a part of any improvement works in Dún Chaoin.