It runs from South Carolina state line to the town of Hamlet.

Heading north, NC 38 connects with U.S. Route 74 (US 74) which is also a future segment of Interstate 74.

[2] NC 38 is named in honor of Louis Breeden, a Hamlet-native and former professional American Football player who played defensive back for the Cincinnati Bengals (1978-1987) in the National Football League.

[4] North Carolina Highway 771 (NC 771) first appeared as a new primary routing in 1930, traveling from US 311/NC 77, east of Winston-Salem, to US 421/NC 60, in Kernersville.

The second NC 771 was established as new primary routing in 1936, from Hamlet to the South Carolina state line, where it continued as SC 96.