We prepared 4H-SiC{03-38} wafers by slicing the ingots grown in the <03-38> directions. We used seed crystals that were prepared by diagonally slicing the 4H-SiC{0001} ingots. We observed that defects, such as micropipes and stacking faults, propagated diagonally and no defects reached the front surface of the ingots. We conducted the epitaxial growth on 4H-SiC{03-38} substrates prepared by slicing the 4H-SiC{0001} ingots. We observed that the {03-38} epilayer exhibits a smooth surface.