The recent discovery of forward-voltage degradation in SiC pin diodes has created an obstacle to the successful commercialization of SiC bipolar power devices. Accordingly, it has attracted intense interest around the world. This article summarizes the progress in both the fundamental understanding of the problem and its elimination.The degradation is due to the formation of Shockley-type stacking faults in the drift layer, which occurs through glide of bounding partial dislocations. The faults gradually cover the diode area, impeding current flow. Since the minimization of stress in the device structure could not prevent this phenomenon, its driving force appears to be intrinsic to the material. Stable devices can be fabricated by eliminating the nucleation sites, namely, dissociated basal-plane dislocations in the drift layer.Their density can be reduced by the conversion of basal-plane dislocations propagating from the substrate into threading dislocations during homoepitaxy.