Upon entering the border town of Dryden, NY 38 emerges from the valley and becomes Dryden–Harford Road as it heads northwestward through a more low-lying but still undeveloped area. The highway gradually curves to the north toward the village of Dryden, where the route changes names to South Street upon entering the village limits. It continues north across Virgil Creek and past three blocks of homes to the commercial village center, where it intersects both NY 13 and NY 392. The latter begins here and heads off to the east while the former joins NY 38 along North Street.