The S-38 was a German motor torpedo boat built for Kriegsmarine by Lurssen in late 1940 and commissioned on 8th November 1940. She was the lead ship of her batch of S-38-class fast torpedo boats that consisted of 15 other boats. These ships were virtually identical to the preceding S-26 class, with only minor changes such as simplified radiators. The career of the S-38 was very short as she was sunk by British destroyers on 20th November 1940 in North Sea.

The S-38 was introduced in Update 1.79 "Project X" as part of the fleet closed beta test. The S-38 unlike her later sister S-100 is very lightly armed with only two 2 cm/65 autocannons, with one located on the stern and the other aft. The boat also carries two G7a torpedoes, one of the best torpedoes mounted on a motor torpedo boat. S-38 is very manoeuvrable, fast, and has a very responsive rudder. The machinery is not protected by any kind of armour so the ship's engines are prone to fire and damage as their transmission covers nearly half of the length of the boat together with the engines. Surprise long-range torpedo attacks are recommended while using this boat.