At over 600 metres long, it will link the New Scapa Road and Old Scapa Road.
Local contractors Andrew Sinclair began working on the new Foreland Road last year in September.
Other features include a new roundabout in addition to pedestrian/cyclist access, with a "significant level" of planting and comprehensive drainage work.
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Cllr Steven Heddle said: "I am pleased that Foreland Road is now officially open. This has been a considerable project that will serve both as a practical function for the new hospital and the new planting scheme will be visually appealing to the wider Orkney community."
The council's Head of Roads and Environmental Services, Darren Richardson, added: "This 'in-house' designed scheme includes footpaths for pedestrians and cyclists that pass through the natural landscape of a large variety of plants and trees, ponds and a stone seating bench, all of which helps the link road blend into its surroundings."
(LM)
