We report observation of the enhancement of superconductivity near lattice dislocations and the absence of the strengthening of vortex pinning in odd-parity superconductor Sr$_2$RuO$_4$, both surprising results in direct contrast to the well known sensitivity of superconductivity in Sr$_2$RuO$_4$ to disorder. The enhanced superconductivity appears to be related fundamentally to the two-component nature of the superconducting order parameter, as revealed in our phenomenological theory taking into account the effect of symmetry reduction near a dislocation.