This is an exceptional example of a seldom seen fully transferable MP.38 submachine gun, complete with a rare original leather bolt retention strap; a safety feature added to the MP.38 due to issues with this model being prone to accidental discharge when the bolt handle was bumped while in the forward position, prior to the introduction of the improved two-piece bolt handle and notch as seen on this example. The guns themselves are uncommon, and surviving original leather bolt retention straps are far and few between. Produced from 1938 to 1940, the MP.38 was in active use during some of the earliest aggressive action of World War II in Europe, and saw active use on all fronts; no doubt many were destroyed through the rigors of service or captured on the Eastern Front as the war went on, leaving few examples to be captured by American GIs on the Western Front, and fewer still on the American market in high condition. The immediate forerunner to the MP.40, the MP.38 marks a transition point between the more intricate and expensive machined steel and wood submachine guns of World War I and the inter-war years with the more efficient stampings and drawings that would typify the World War II European machine gun. They were produced by three factories including Erma Werke, Haenel and Steyr, with this example produced by the Erma Werke factory in 1940. Often misattributed to Schmeisser, the MP.38 set the tone for German submachine guns through the end of the war, and the MP.40 would closely follow the blueprint it set. The main changes between the models were A) streamlining the design to speed production and reduce reliance on machined components and B) introducing the two-piece charging handle to improve the drop safety of the weapon, an issue with open bolt submachine guns worldwide versus a flaw with the MP.38 itself. Blade front and two-leaf notch rear sights, with all matching serial numbers and "eagle/280" proofs on the barrel, receiver, socket, and several other components. The MP.38 receiver tube shows the distinctive fluting down the length, with holes through the sides of the magazine well and "I.A.C./AUSTIN/TX" on the underside, and the socket is marked "M.P. 38/27/1940", with an early alloy grip assembly. The bolt assembly has been retrofitted with the MP.40 style two-piece charging handle, with an appropriate notch added to the bolt raceway. Fitted with a set of matching number bakelite grip panels, an underfolding steel stock, brown leather sling and a brown leather bolt retention strap. Included with the lot is an extra magazine, three loading tools, and a modern case.