diff --git a/novaclient/__init__.py b/novaclient/__init__.py
index f9270766f..99d9f4a74 100644
--- a/novaclient/__init__.py
+++ b/novaclient/__init__.py
@@ -25,4 +25,4 @@ API_MIN_VERSION = api_versions.APIVersion("2.1")
 # when client supported the max version, and bumped sequentially, otherwise
 # the client may break due to server side new version may include some
 # backward incompatible change.
-API_MAX_VERSION = api_versions.APIVersion("2.37")
+API_MAX_VERSION = api_versions.APIVersion("2.38")
diff --git a/novaclient/tests/unit/v2/test_shell.py b/novaclient/tests/unit/v2/test_shell.py
index 5eb19b04f..e71ba0e00 100644
--- a/novaclient/tests/unit/v2/test_shell.py
+++ b/novaclient/tests/unit/v2/test_shell.py
@@ -3080,6 +3080,7 @@ class ShellTest(utils.TestCase):
                  # novaclient
             34,  # doesn't require any changes in novaclient
             37,  # There are no versioned wrapped shell method changes for this
+            38,  # doesn't require any changes in novaclient
         ])
         versions_supported = set(range(0,
                                  novaclient.API_MAX_VERSION.ver_minor + 1))
diff --git a/releasenotes/notes/microversion-v2_38-0618fe2b3c7f96f9.yaml b/releasenotes/notes/microversion-v2_38-0618fe2b3c7f96f9.yaml
new file mode 100644
index 000000000..3f8bc84c3
--- /dev/null
+++ b/releasenotes/notes/microversion-v2_38-0618fe2b3c7f96f9.yaml
@@ -0,0 +1,5 @@
+---
+upgrade:
+  - Support for microversion 2.38 added. As of microversion 2.38, invalid
+    statuses passed to 'nova list --status invalid_status' will result in a
+    HTTP 400 Bad Request error response.
\ No newline at end of file