Production is in Novosibirsk, Russia, but some crucial parts are also made in Ukraine and Belarus.

[2][unreliable source] Impetus for a stretch of the Antonov An-28 design began with a 1989 sales tour in India, where it became clear that a significant market existed for an aircraft similar to the An-28, but with seating in the 25–30 seat range.

The design was approved a year later, and was displayed at the 1991 Paris Air Show as a model.

The An-38 is of a similar design to the older An-28, featuring the same wings and tail; but it has a longer fuselage and includes several enhancements, such as higher fuel efficiency, increased comfort (cabin and cockpit), and decreased internal noise, coupled with better sound insulation.

Furthermore, the aircraft is more resistant to stalling at high angles of attack and is stable and maneuverable with ice on the wing and tail assembly.