Basal Plane Dislocations (BPD) were reduced in 4H-SiC epilayers by high temperature annealing in the range of 1600 C to 1950 C using two annealing techniques. Samples annealed at> 1750 C showed almost complete elimination of BPDs propagating from the substrate. However, surface morphology was degraded for MW annealed samples above 1800 C, with new BPDs being generated from the surface. A new capping technique was developed along with application of high N 2 overpressure to preserve the surface morphology and avoid formation of new BPDs.