Inconel 738 is one of the widely used nickel-based superalloys in high-temperature applications, especially in land-based and aerospace gas turbine engines. This paper reports the feasibility of direct laser metal deposition (LMD) of Inconel 738. Cracks evolved during deposition at the substrate/deposit interface and within the deposit along high angle grain boundary for scanning speed of 6 and 12 mm/s due to the intense residual stress and incipient melting. Results showed liquation cracking due to low melting crack boundary γ′ and significant micro-segregation of Al and Ti along the crack boundaries. By maximizing the energy density and by reducing the scanning speed to 3 mm/s, crack-free single wall specimens were successfully manufactured. Microstructural evolution of primary, secondary, grain boundary γ′, MC carbides, and M2B borides in the as-deposited and heat-treat specimens are discussed. Mechanical properties and microstructural development were investigated using tensile testing and scanning electron microscopy. Energy dispersive spectroscopy confirmed significant micro-segregation on various elements along the interdendritic and grain boundaries. X-ray diffraction validated the presence of the observed carbides and boride in the as-deposited and heat-treated samples.