We have developed advanced lapping and polishing methods for silicon carbide (SiC) substrates using an Fe abrasive particles and hydrogen peroxide (H2O2) solution. In this method, a SiC surface is oxidized by hydroxyl radicals (OH*), which was generated by Fe catalyst reactions, and the oxide layer on the SiC is mechanically and/or chemically removed by Fe abrasive particles and solution [1-4]. In this study, we applied this planarization method for lapping and polishing SiC surface, in which catalytically generated hydroxyl radicals were utilized to oxidize the surface of a SiC wafer. The processed surfaces were observed by optical interferometric microscope, Nomarski differential interference contrast. These observations showed that surface roughness and flatness of a SiC substrate were markedly improved and scratch-free SiC surface was obtained. These results provide useful information for preparing a high-efficiency and high-accuracy SiC substrate.