A study of the microstructural characteristics of laser arc hybrid welded nickel based IN738 superalloy was performed. Laser arc hybrid welding produced a desirable weld profile in the alloy, similar to what is usually obtained during laser beam welding, and no cracking occurred exclusively in the fusion zone. Elemental partitioning pattern in the fusion zone was studied by electron probe microanalysis and calculating the volume fraction of the weld metal that resulted from the consumption of the filler wire. The result showed that Ti, Ta, Nb, Mo, Al and Zr partitioned into the interdendritic regions of the fusion zone. SEM and TEM examination of the fusion zone showed the presence of secondary solidification reaction constituents, which consists of MC type carbides. The study further revealed that non-equilibrium liquation of various second phases that were present in the alloy prior to welding contributed to intergranular liquation in the heat affected zone (HAZ), which consequently resulted in extensive HAZ intergranular cracking during welding. Although laser arc hybrid welding appears promising for improving the weldability of nickel based IN738 superalloy, a suitable weldability improvement procedure is required in order to minimise HAZ intergranular cracking and thereby enhance the applicability of this technology to the joining of the superalloy.