The behavior of displacement field due to a screw dislocation is similar to the angular basis function (ABF) Arg(z). It is different from the radial basis function (RBF) ln(r) that is used to describe the velocity potential of a sink or source. Nevertheless, the complex-valued fundamental solution ln(z) contains the two parts of RBF ln(r) and ABF Arg(z). In this paper, not only the RBF in the null-field boundary integral equation (BIE) but also the ABF for the screw dislocation are employed to study the interaction between a screw dislocation and an elastic elliptical inhomogeneity. This problem is decomposed into a free field with a screw dislocation and a boundary value problem containing an elliptical inhomogeneity. The boundary value problem is solved by using the RBF and the null-field BIE. Since the geometric shape is an ellipse, the degenerate kernel is expanded to a series form under the elliptical coordinates, while the unknown boundary densities are expanded to eigenfunctions. By combining the degenerate kernel and the null-field BIE, the boundary value problem can be easily solved. The inconsistency between Sendeckyj [1] and Gong & Meguid [2] for the problem was also found by using the present approach. The error in [2] was also printed out. Finally, some examples are demonstrated to verify the validity of the present approach.