NY 38 begins at an intersection with NY 96 about north of the Owego village limits in the town of Owego. The road heads northeastward as a two-lane highway, paralleling Owego Creek as it proceeds along the base of a valley surrounding the waterway. The Tioga County portion of NY 38 passes through mostly rural, forested areas with only small, scattered pockets of development. The route continues toward the hamlet of Flemingville, where the Owego Creek splits into western and eastern branches. NY 38 does not enter the community; instead, it bypasses it to the southeast and follows the eastern branch of Owego Creek into the town of Newark Valley.