A transmission electron microscopy (TEM) study on the generation of stacking faults (SFs) and stacking fault (SF) induced inclusion during 3C-SiC growth by Continuous Feed Physical Vapour Transport (CF-PVT) method on 4H-SiC substrates is presented. A transition region of about 100 nm between the 4H-SiC substrate and 3C-SiC layer, where cubic and 4H-SiC sequences follow after each other is observed. A tendency for formation of multiple stacking faults (SFs) as opposed to the more common for fcc materials intrinsic (single) or extrinsic (double) SFs was observed. They rarely originate directly at the interface, but they are found to start on twin boundaries in some cases. Later during the CF-PVT growth process the density of SFs in the (111) and ((1) over bar 11) gradually increases. The ((1) over bar 1 1) SF density is the higher which leads to the formation of large 6H-SiC inclusions, extending to large lengths. (C) 2009 Elsevier B.V. All rights reserved.