The higher-spin structure of $^{38}$Cl ($N = 21$) was investigated following the $^{26}$Mg($^{14}$C, $pn$) reaction at 30 and 37 MeV beam energies. The outgoing protons were detected in an $E- Delta E$ Si telescope placed at 0$^circ$ close to the target with a Ta beam stopper between the target and telescope. Multiple $gamma$ rays were detected in time coincidence with the protons using an enhanced version of the FSU $gamma$ detection array. The level scheme was extended up to 8420 keV with a likely spin of 10 $hbar$. A new multishell interaction was developed guided by the experimental information. This FSU interaction was built by fitting to the energies of 270 experimental states from $^{13}$C to $^{51}$Ti. Calculations using the FSU interaction reproduce observed properties of $^{38}$Cl rather well, including the spectroscopic factors. The interaction has been successfully used to interpret the $1p1h$ and $2p2h$ configurations in some nearby nuclei as well.