The two routes cross the Owasco Outlet and enter a more residential area of the community, where NY 38 splits from NY 31 and continues north along Canal Street. The route crosses over the New York State Thruway (I-90) as it leaves the village limits and heads north into a largely undeveloped area of forests and fields. At North Port Byron, a sparsely populated hamlet north of Port Byron, NY 38 passes over the CSX Transportation-owned Rochester Subdivision railroad line. The highway continues on, becoming Conquest Road and crossing the Seneca River (Erie Canal) at Mosquito Point, near where Owasco Outlet flows into the river. NY 38 enters the town of Conquest upon traversing the waterway.