Basal plane dislocations (BPD) were mostly eliminated in 4H-SiC epitaxy using post growth high temperature annealing in the range of 1600 o C-1950 o C for 30s-2 mins. The samples annealed at temperatures> 1700 o C showed the best BPD reduction. However, surface morphology was degraded for samples annealed> 1850 o C, and new BPDs were generated. A better capping technique was developed to improve the surface morphology and avoid generation of new BPDs, while significantly reducing the existing BPDs in the SiC epitaxial layers.