Owning to the superior properties of the wide bandgap, high carrier mobility, high thermal conductivity and high stability, 4H silicon carbide (4H-SiC) holds great promise for the applications of electrical vehicles, 5G communications and new-energy systems. Although the industrialization of 150 mm 4H-SiC substrates and epitaxial layers has been successfully achieved, the existence of high density of dislocations is one of the most important bottlenecks for advancing the device performance and reliability of 4H-SiC based high-power and high-frequency electronics. In this topical review, the classification and basic properties of dislocations in 4H-SiC wafers and epitaxial layers are introduced. The generation, evolution and annihilation of dislocations during the single-crystals growth of 4H-SiC boules, the processing of 4H-SiC wafers, as well as the homoepitaxy of 4H-SiC layers are systematically reviewed. The characterization and discrimination of dislocations in 4H-SiC are presented. The effect of dislocations on the electronic and optical properties of 4H-SiC wafers and epitaxial layers, as well as the role of dislocations on the device performance and reliability are finally presented. This topical review provides insight into the fundamentals and evolution of dislocations in 4H-SiC, and is expected to provide inspiration for further manipulation of dislocations in 4H-SiC.