For improving crystal quality of PVT-Grown silicon carbide (SiC) for power electronic applications, a comprehensive understanding of the mechanisms of generation, propagation, and conversion of defects during the growth process is of great importance. Prismatic punching can be induced through the formation and emission of dislocation loops of prismatic nature when a small particle with a strong contrast of thermomechanical properties vs. the host crystal forms an inclusion in the latter. The system behaves as an indentation punch that pushes prisms of the host crystal in the prismatic axis direction. The slip planes bounding the prism surface are displaced by the indenter with shearing stress, which can generate rings of dislocations through Frank-Read mechanism [1-4]. Such prismatic punched dislocation loops are primarily found in multiphase materials mainly with cubic structure [5-7]. However, observation of prismatic punching behavior has not yet been reported in published literature for hexagonal SiC. In this study, optically observable hexagonal shaped defect features (Fig. 1a) about 15-19 µm in diameter are found mainly distributed at the inner region of a 6-inch 4° off-axis 4H-SiC substrate wafer grown by physical vapor transport (PVT) method. Synchrotron X-ray topography (XRT) shows these defect features are foreign inclusions with large strain contrasts associated with each of them (Fig. 1b). On the grazing-incidence 11-28 reflection (Fig. 1c), these hexagonal features are found to be distributed at different depths within the crystal up to the effective penetration depth [8]. Inclusion contrasts are either white or dark (Fig. 1e), corresponding its position closer to the sample surface or embedded deeper into the crystal, respectively. This is confirmed by comparing the ray tracing [9] simulated inclusion contrasts at different depths below the crystal surface. The dislocations generated due to the presence of an inclusion are further investigated through synchrotron XRT in conjunction with ray tracing simulation. Indentation behavior is found to be induced by the presence of inclusions in both regular (9keV) and high energy (18keV) grazing-incidence topographs. These topographs show dislocation arrays that nucleated and propagated from inclusions along <11-20> directions, which supports the hypothesis of dislocation loop generation due to prismatic punching. These dislocation arrays exhibit opposite-signed threading edge dislocation (TED) pairs or basal plane dislocation (BPD) segments as determined by the position of prismatic loops with respect to the wafer surface (Fig. 2). The stress induced by inclusion embedded in the 4H-SiC matrix is estimated from the difference in the thermomechanical properties, as the crystal is cooled from the growth temperature. Moreover, generation of opposite-signed screw dislocation pairs, as well as BPD half loops, was also observed and attributed to the inclusions. This study will provide insights on the behavior of inclusions embedded in SiC as well as the activation of associated dislocations. [1] F. Seitz, Rev. Mod. Phys. 79, 723 (1950). [2] D. A. Jones and J. W. Mitchell, Phil. Mag. 3, 1 (1958). [3] L. Brown and G. Woolhouse, Philos Mag. 21, 329 (1970). [4] M. Ashby and L. Johnson, Philos Mag. 20, 1009 (1969). [5] Y. Flom and R. J. Arsenault, JOM 38, 31 (1986). [6] M. Wada and J. Suzuki, Japanese Journal of Applied Physics 27, 972 (1988). [7] A. Giannattasio, et al., Comput. Mater. Sci. 30, 131 (2004). [8] Q. Cheng et al., Mater. Sci. Forum. 1062, 366 (2022). [9] X. R. Huang, et al., J. Appl. Cryst. 32, 516 (1999).