Homoepitaxial growth on 4H-SiC (11-20) substrate grown in the [11-20] direction by sublimation method has been carried out. This epilayer exhibited smooth surface morphology with no defects as compared with the epilayer grown on (11-20) substrate prepared from the conventional [0001] grown crystal. X-ray diffracfion measurements indicated that the sharp and single diffraction peak in both x-ray incident directions of parallel and perpendicular to the c-axis. By KOH etching, it was found that stacking faults in the substrate were replicated to epilayer or rather increased. The interface state density of the MOS structure was not affected by the stacking fault. I-V characteristics of Schottky diodes revealed that the stacking fault unfavorably affects leakage current and breakdown voltage.