diff --git a/packages/bundler/package.json b/packages/bundler/package.json
index d6903cc1209..c1ae37640f3 100644
--- a/packages/bundler/package.json
+++ b/packages/bundler/package.json
@@ -38,7 +38,7 @@
     "!dist/test/**"
   ],
   "dependencies": {
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@rollup/plugin-virtual": "~3.0.1",
     "@rollup/plugin-commonjs": "~23.0.2",
     "@rollup/plugin-json": "~5.0.1",
diff --git a/packages/cadl-vscode/package.json b/packages/cadl-vscode/package.json
index 3dd885a2f3e..c07399c00b6 100644
--- a/packages/cadl-vscode/package.json
+++ b/packages/cadl-vscode/package.json
@@ -121,7 +121,7 @@
     "@types/mocha": "~10.0.0",
     "@types/node": "~18.11.9",
     "@types/vscode": "~1.53.0",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/eslint-config-cadl": "~0.5.0",
     "@cadl-lang/internal-build-utils": "~0.3.2",
     "eslint": "^8.12.0",
diff --git a/packages/compiler/CHANGELOG.json b/packages/compiler/CHANGELOG.json
index 26cad94370a..61fc4343d2e 100644
--- a/packages/compiler/CHANGELOG.json
+++ b/packages/compiler/CHANGELOG.json
@@ -1,6 +1,18 @@
 {
   "name": "@cadl-lang/compiler",
   "entries": [
+    {
+      "version": "0.38.1",
+      "tag": "@cadl-lang/compiler_v0.38.1",
+      "date": "Thu, 08 Dec 2022 22:04:15 GMT",
+      "comments": {
+        "patch": [
+          {
+            "comment": "Fix: `scalar` can be used inside of namespace block"
+          }
+        ]
+      }
+    },
     {
       "version": "0.38.0",
       "tag": "@cadl-lang/compiler_v0.38.0",
diff --git a/packages/compiler/CHANGELOG.md b/packages/compiler/CHANGELOG.md
index 2529eb816e7..5a18e8d109a 100644
--- a/packages/compiler/CHANGELOG.md
+++ b/packages/compiler/CHANGELOG.md
@@ -1,6 +1,13 @@
 # Change Log - @cadl-lang/compiler
 
-This log was last generated on Wed, 07 Dec 2022 17:21:52 GMT and should not be manually modified.
+This log was last generated on Thu, 08 Dec 2022 22:04:15 GMT and should not be manually modified.
+
+## 0.38.1
+Thu, 08 Dec 2022 22:04:15 GMT
+
+### Patches
+
+- Fix: `scalar` can be used inside of namespace block
 
 ## 0.38.0
 Wed, 07 Dec 2022 17:21:52 GMT
diff --git a/packages/compiler/core/parser.ts b/packages/compiler/core/parser.ts
index 4bbca6c5321..c98cabcfce2 100644
--- a/packages/compiler/core/parser.ts
+++ b/packages/compiler/core/parser.ts
@@ -449,6 +449,9 @@ function createParser(code: string | SourceFile, options: ParseOptions = {}): Pa
         case Token.ModelKeyword:
           item = parseModelStatement(pos, decorators);
           break;
+        case Token.ScalarKeyword:
+          item = parseScalarStatement(pos, decorators);
+          break;
         case Token.NamespaceKeyword:
           const ns = parseNamespaceStatement(pos, decorators);
 
diff --git a/packages/compiler/package.json b/packages/compiler/package.json
index c8541c8508b..a9a81f0a5e5 100644
--- a/packages/compiler/package.json
+++ b/packages/compiler/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@cadl-lang/compiler",
-  "version": "0.38.0",
+  "version": "0.38.1",
   "description": "Cadl Compiler Preview",
   "author": "Microsoft Corporation",
   "license": "MIT",
diff --git a/packages/compiler/test/parser.test.ts b/packages/compiler/test/parser.test.ts
index 198a993f5d0..5b95383ce2e 100644
--- a/packages/compiler/test/parser.test.ts
+++ b/packages/compiler/test/parser.test.ts
@@ -144,6 +144,23 @@ describe("compiler: parser", () => {
       ["model bar<a, b> = a | b;", [/'{' expected/]],
     ]);
   });
+
+  describe("scalar statements", () => {
+    parseEach([
+      "scalar uuid extends string;",
+      `@foo()
+      scalar uuid extends string;`,
+      `namespace Foo { 
+        scalar uuid extends string;}
+        `,
+    ]);
+
+    parseErrorEach([
+      ["scalar uuid extends string { }", [/Statement expected./]],
+      ["scalar uuid is string;", [/Statement expected./]],
+    ]);
+  });
+
   describe("interface statements", () => {
     parseEach([
       "interface Foo { }",
diff --git a/packages/html-program-viewer/package.json b/packages/html-program-viewer/package.json
index b8391e65dc2..b54cced8938 100644
--- a/packages/html-program-viewer/package.json
+++ b/packages/html-program-viewer/package.json
@@ -51,7 +51,7 @@
     "!dist/test/**"
   ],
   "peerDependencies": {
-    "@cadl-lang/compiler": "~0.38.0"
+    "@cadl-lang/compiler": "~0.38.1"
   },
   "dependencies": {
     "prettier": "~2.7.1",
@@ -66,7 +66,7 @@
     "@types/prettier": "2.6.0",
     "@types/react": "~18.0.5",
     "@types/react-dom": "~18.0.1",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/eslint-config-cadl": "~0.5.0",
     "@babel/core": "^7.0.0",
     "eslint": "^8.12.0",
diff --git a/packages/library-linter/package.json b/packages/library-linter/package.json
index ab39f346839..25a57adffa8 100644
--- a/packages/library-linter/package.json
+++ b/packages/library-linter/package.json
@@ -51,12 +51,12 @@
     "!dist/test/**"
   ],
   "peerDependencies": {
-    "@cadl-lang/compiler": "~0.38.0"
+    "@cadl-lang/compiler": "~0.38.1"
   },
   "devDependencies": {
     "@types/mocha": "~10.0.0",
     "@types/node": "~18.11.9",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/eslint-config-cadl": "~0.5.0",
     "eslint": "^8.12.0",
     "mocha": "~10.1.0",
diff --git a/packages/lint/package.json b/packages/lint/package.json
index ef13f5bf4b2..8f1c234b7d8 100644
--- a/packages/lint/package.json
+++ b/packages/lint/package.json
@@ -50,12 +50,12 @@
     "!dist/test/**"
   ],
   "peerDependencies": {
-    "@cadl-lang/compiler": "~0.38.0"
+    "@cadl-lang/compiler": "~0.38.1"
   },
   "devDependencies": {
     "@types/mocha": "~10.0.0",
     "@types/node": "~18.11.9",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/eslint-config-cadl": "~0.5.0",
     "@cadl-lang/eslint-plugin": "~0.38.0",
     "eslint": "^8.12.0",
diff --git a/packages/migrate/CHANGELOG.json b/packages/migrate/CHANGELOG.json
index c6abdc0f26a..beea6213dac 100644
--- a/packages/migrate/CHANGELOG.json
+++ b/packages/migrate/CHANGELOG.json
@@ -1,6 +1,29 @@
 {
   "name": "@cadl-lang/migrate",
   "entries": [
+    {
+      "version": "0.38.1",
+      "tag": "@cadl-lang/migrate_v0.38.1",
+      "date": "Thu, 08 Dec 2022 22:04:15 GMT",
+      "comments": {
+        "patch": [
+          {
+            "comment": "Fix missing file env header"
+          },
+          {
+            "comment": "Fix issue with end of file getting dropped."
+          }
+        ],
+        "dependency": [
+          {
+            "comment": "Updating dependency \"@cadl-lang/compiler\" from `~0.38.0` to `~0.38.1`"
+          },
+          {
+            "comment": "Updating dependency \"@cadl-lang/compiler\" from `~0.38.0` to `~0.38.1`"
+          }
+        ]
+      }
+    },
     {
       "version": "0.38.0",
       "tag": "@cadl-lang/migrate_v0.38.0",
diff --git a/packages/migrate/CHANGELOG.md b/packages/migrate/CHANGELOG.md
index a86ddba9ea7..533fb4d21df 100644
--- a/packages/migrate/CHANGELOG.md
+++ b/packages/migrate/CHANGELOG.md
@@ -1,6 +1,14 @@
 # Change Log - @cadl-lang/migrate
 
-This log was last generated on Wed, 07 Dec 2022 17:21:52 GMT and should not be manually modified.
+This log was last generated on Thu, 08 Dec 2022 22:04:15 GMT and should not be manually modified.
+
+## 0.38.1
+Thu, 08 Dec 2022 22:04:15 GMT
+
+### Patches
+
+- Fix missing file env header
+- Fix issue with end of file getting dropped.
 
 ## 0.38.0
 Wed, 07 Dec 2022 17:21:52 GMT
diff --git a/packages/migrate/package.json b/packages/migrate/package.json
index f57f7350030..b1e7e846e45 100644
--- a/packages/migrate/package.json
+++ b/packages/migrate/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@cadl-lang/migrate",
-  "version": "0.38.0",
+  "version": "0.38.1",
   "author": "Microsoft Corporation",
   "description": "Migration tool for cadl.",
   "homepage": "https://github.com/Microsoft/cadl",
@@ -39,13 +39,13 @@
   ],
   "dependencies": {
     "globby": "~13.1.1",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/compiler-v0.37": "npm:@cadl-lang/compiler@0.37.0"
   },
   "devDependencies": {
     "@types/mocha": "~10.0.0",
     "@types/node": "~18.11.9",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/eslint-config-cadl": "~0.5.0",
     "@cadl-lang/eslint-plugin": "~0.38.0",
     "eslint": "^8.12.0",
diff --git a/packages/migrate/src/cli.ts b/packages/migrate/src/cli.ts
index 176f4123cbf..309d9169ea9 100644
--- a/packages/migrate/src/cli.ts
+++ b/packages/migrate/src/cli.ts
@@ -1,3 +1,5 @@
+#!/usr/bin/env node
+
 /* eslint-disable no-console */
 import { migrateCadlFiles } from "./migrate.js";
 import { migrateModelToScalar } from "./migrations/v0.38/model-to-scalars.js";
diff --git a/packages/migrate/src/migrate.ts b/packages/migrate/src/migrate.ts
index a025b92cbf7..f419b99730e 100644
--- a/packages/migrate/src/migrate.ts
+++ b/packages/migrate/src/migrate.ts
@@ -87,6 +87,8 @@ function migrateCadlContentInternal(
     segments.push(action.content);
     last = action.target.end;
   }
+  segments.push(content.slice(last, -1));
+
   const newContent = segments.join("");
 
   try {
diff --git a/packages/migrate/src/migrations/v0.38/model-to-scalars.ts b/packages/migrate/src/migrations/v0.38/model-to-scalars.ts
index 98018490992..8c8c727aa25 100644
--- a/packages/migrate/src/migrations/v0.38/model-to-scalars.ts
+++ b/packages/migrate/src/migrations/v0.38/model-to-scalars.ts
@@ -1,4 +1,8 @@
-import type { CadlScriptNode, TemplateParameterDeclarationNode } from "@cadl-lang/compiler-v0.37";
+import type {
+  CadlScriptNode,
+  Node,
+  TemplateParameterDeclarationNode,
+} from "@cadl-lang/compiler-v0.37";
 import {
   CadlCompilerV0_37,
   createMigration,
@@ -24,7 +28,7 @@ export const migrateModelToScalar = createMigration({
     }
 
     const actions: MigrateAction[] = [];
-    compilerV37.visitChildren(root, (node) => {
+    visitRecursive(compilerV37, root, (node) => {
       if (
         node.kind === compilerV37.SyntaxKind.ModelStatement &&
         node.is &&
@@ -47,6 +51,14 @@ export const migrateModelToScalar = createMigration({
   },
 });
 
+function visitRecursive(compiler: any, root: Node, callback: (node: Node) => void) {
+  const visit = (node: Node) => {
+    callback(node);
+    compiler.visitChildren(node, visit);
+  };
+  visit(root);
+}
+
 const builtInTypes = new Set([
   "bytes",
   "numeric",
diff --git a/packages/migrate/test/model-to-scalars.test.ts b/packages/migrate/test/model-to-scalars.test.ts
index 0d64d43e39b..8dbe8d1f2a0 100644
--- a/packages/migrate/test/model-to-scalars.test.ts
+++ b/packages/migrate/test/model-to-scalars.test.ts
@@ -3,7 +3,7 @@ import { migrateCadlContent } from "../src/migrate.js";
 import { migrateModelToScalar } from "../src/migrations/v0.38/model-to-scalars.js";
 
 describe("migration: model to scalars", () => {
-  it("convert", async () => {
+  it("various models", async () => {
     const [result] = await migrateCadlContent(
       `
 model foo is string;
@@ -35,4 +35,44 @@ scalar Resource<T> extends int32;
     `.trim()
     );
   });
+
+  it("inside namespace", async () => {
+    const [result] = await migrateCadlContent(
+      `
+namespace MyService {        
+  model foo is string;
+}
+    `,
+      migrateModelToScalar
+    );
+
+    strictEqual(
+      result.trim(),
+      `
+namespace MyService {
+  scalar foo extends string;
+}
+    `.trim()
+    );
+  });
+
+  it("with operations", async () => {
+    const [result] = await migrateCadlContent(
+      `
+model foo is string;
+
+op test(): string;
+    `,
+      migrateModelToScalar
+    );
+
+    strictEqual(
+      result.trim(),
+      `
+scalar foo extends string;
+
+op test(): string;
+    `.trim()
+    );
+  });
 });
diff --git a/packages/openapi/package.json b/packages/openapi/package.json
index 419ce6afd99..e792584351a 100644
--- a/packages/openapi/package.json
+++ b/packages/openapi/package.json
@@ -52,13 +52,13 @@
     "!dist/test/**"
   ],
   "peerDependencies": {
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/rest": "~0.38.0"
   },
   "devDependencies": {
     "@types/mocha": "~10.0.0",
     "@types/node": "~18.11.9",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/rest": "~0.38.0",
     "@cadl-lang/eslint-config-cadl": "~0.5.0",
     "@cadl-lang/library-linter": "~0.38.0",
diff --git a/packages/openapi3/package.json b/packages/openapi3/package.json
index fa563398cc7..d7360009b57 100644
--- a/packages/openapi3/package.json
+++ b/packages/openapi3/package.json
@@ -53,14 +53,14 @@
   ],
   "peerDependencies": {
     "@cadl-lang/versioning": "~0.38.0",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/rest": "~0.38.0",
     "@cadl-lang/openapi": "~0.38.0"
   },
   "devDependencies": {
     "@types/mocha": "~10.0.0",
     "@types/node": "~18.11.9",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/rest": "~0.38.0",
     "@cadl-lang/openapi": "~0.38.0",
     "@cadl-lang/versioning": "~0.38.0",
diff --git a/packages/playground/package.json b/packages/playground/package.json
index 6edd2295036..98f162f01dc 100644
--- a/packages/playground/package.json
+++ b/packages/playground/package.json
@@ -42,7 +42,7 @@
   ],
   "dependencies": {
     "@cadl-lang/versioning": "~0.38.0",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/rest": "~0.38.0",
     "@cadl-lang/openapi3": "~0.38.0",
     "@cadl-lang/openapi": "~0.38.0",
diff --git a/packages/prettier-plugin-cadl/package.json b/packages/prettier-plugin-cadl/package.json
index f9ef6b69213..12296784eaf 100644
--- a/packages/prettier-plugin-cadl/package.json
+++ b/packages/prettier-plugin-cadl/package.json
@@ -15,7 +15,7 @@
     "prettier": "~2.7.1"
   },
   "devDependencies": {
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/internal-build-utils": "~0.3.2",
     "@rollup/plugin-commonjs": "~23.0.2",
     "@rollup/plugin-json": "~5.0.1",
diff --git a/packages/rest/package.json b/packages/rest/package.json
index c813d993b79..4d7e4038aee 100644
--- a/packages/rest/package.json
+++ b/packages/rest/package.json
@@ -56,12 +56,12 @@
     "!dist/test/**"
   ],
   "peerDependencies": {
-    "@cadl-lang/compiler": "~0.38.0"
+    "@cadl-lang/compiler": "~0.38.1"
   },
   "devDependencies": {
     "@types/mocha": "~10.0.0",
     "@types/node": "~18.11.9",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/eslint-config-cadl": "~0.5.0",
     "@cadl-lang/library-linter": "~0.38.0",
     "@cadl-lang/eslint-plugin": "~0.38.0",
diff --git a/packages/samples/package.json b/packages/samples/package.json
index c9a48e15cd9..59db615b4cf 100644
--- a/packages/samples/package.json
+++ b/packages/samples/package.json
@@ -33,7 +33,7 @@
   ],
   "dependencies": {
     "@cadl-lang/versioning": "~0.38.0",
-    "@cadl-lang/compiler": "~0.38.0",
+    "@cadl-lang/compiler": "~0.38.1",
     "@cadl-lang/rest": "~0.38.0",
     "@cadl-lang/openapi": "~0.38.0",
     "@cadl-lang/openapi3": "~0.38.0",
diff --git a/packages/versioning/package.json b/packages/versioning/package.json
index 5de98d43036..d0479b16d8c 100644
--- a/packages/versioning/package.json
+++ b/packages/versioning/package.json
@@ -52,7 +52,7 @@
     "!dist/test/**"
   ],
   "dependencies": {
-    "@cadl-lang/compiler": "~0.38.0"
+    "@cadl-lang/compiler": "~0.38.1"
   },
   "devDependencies": {
     "@types/mocha": "~10.0.0",