It runs entirely within the town of Southport and intersects with SR 27 at both ends.

SR 238 traverses the eastern edge of Southport Island, serving as an alternate to SR 27 which runs roughly parallel on the western side of the island.

It is locally named Cape Newagen Road over its entire 3.73-mile (6.00 km) length.

From this intersection, SR 238 proceeds almost directly north, running along the eastern side of the island.

[citation needed] The entire route is in Southport, Lincoln County.