The 1938 National League Division Two was the inaugural season of British speedway's National League Division Two albeit a continuation of the Provincial League from the previous season in all but name.
The list of teams had several changes. Bristol Bulldogs had moved up to the National League and Hackney Wick Wolves had moved down to take their place. They also swapped licences and riders as well as divisions. Other new entrants were Lea Bridge Cubs, Newcastle, Sheffield and West Ham Hawks (West Ham's reserve team). Nottingham withdrew just before the league season started and were replaced by Leeds Lions. Belle Vue Merseysiders who had replaced Liverpool in the previous season were also absent.
Hackney Wick Wolves won the title.
Final Table Division Two
|Hackney Wick Wolves||16||12||0||4||24|
|West Ham Hawks||16||8||2||6||18|
|Lea Bridge Cubs||16||8||0||8||16|