I am planning to drive from Fairbanks to Skagway in a day. Any gotchas ? How is the drive.

It's 700 miles, and not "freeway" driving. You might want to do this over 2 days.

what would a best place to stop in between ?

I think Tok is the usual stopping point between the two -- one of the few places with much of anything in terms of accomodations and restaurants, but perhaps someone knows of a "special" stopping place between the two?

I really think it's too far for one day; depending on time of year either (a) construction or (b) roads needing construction will slow you down, as will the usual parade of elephants once you hit the campers and RVs poking along.

Tok is indeed the usual stopping place, but if you get an early start from Fairbanks you might also consider Beaver Creek YT, right at the border. Not many places, but it will make for an easier drive the next day. The second day is the more scenic of the two IMO,

Thanks for the replies. I had one more question. How is the traffic on this highway during August. Is it bumper to bumper
or "no car for miles" or somewhere in between ?

We did Skagway to Anchorage overnighting in Tok one late July. Basically it was no car for miles until we were in Tok and ran into an RV caravan led by the brother of a friend's old girlfriend from high school. He noticed our license plates and struck up a conversation. We tend to get on the road early and stop early. From Skagway we reached Tok in plenty of time for dinner.

how long did it take from skagway to tok.