The 1938 International Lawn Tennis Challenge was the 33rd edition of what is now known as the Davis Cup. 21 teams entered the Europe Zone, while 4 entered the Americas Zone.
Australia defeated Japan in the Americas Zone final, while in the Europe Zone final Germany defeated Yugoslavia. Australia defeated Germany in the Inter-Zonal play-off, but were defeated in the Challenge Round by defending champions the United States. The final was played at the Germantown Cricket Club in Philadelphia, Pennsylvania, United States on 3–5 September.