Abstract: In a historical study of Lam Reung Taw Glawn (Isan or Northeastern Thai or Lao musical folk drama, it was found that this genre of Mor Lam (Isan or Northeastern Thai or Lao folk song singing) has evolved from traditional Lao folk song singing, which has been integrated with certain aspects of traditional Central Thai musical folk drama (known as Likay), resulting in a new form of performance called Lam Mu (folk song singing with multiple performers) or Lam Reung Taw Glawn (musical dramatic singing). Performers were dressed like those in Likay, perform on a stage with background settings and proceed in very much the same way as in a Likay performance. The dialogues were in local dialects. Musical instruments used in the performance include Phin (three-stringed lutes), Khene (mouth pipe organs), Saw (bowed string instruments) and Klong Thone (hand drums) Performances of Lam Reung Taw Glawn have been adapted to better satisfy the audiences in terms of storylines, characters, acting techniques and the application of new technology to make a performance more colorful, spectacular and exciting. The rhythms of music have also become more attuned to the contemporary styles. The study aimed to investigate the potential development of Lam Reung Taw Glawn in a Mor Lam troupe named Petch Ubon in Ban Non-ngahm Village, Si Khai Sub-district, Warin Chamrap District, Ubon Ratchathani Province. The study was qualitative by nature. The data was collected from fieldwork with 38 informants by means of structured and un-structured interviews. These informants included Mor Lam artists, troupe managers, troupe leaders who have been famous for over 10 years, audiences and individuals who hired the troupe. The Isan or Lao musical folk drama has been continuously developed by Petch Ubon Troupe in terms of instruments, performing arts, storylines, characters and presentational techniques. This continuous development means an increasing level of investment. A troupe that has nothing new to present to its audience will soon be regarded as mediocre or unimpressive and will finally sink into oblivion. Many musical folk drama troupes had to overcome many obstacles before they finally succeeded. They had encountered a number of problems. The key factor that helps them through the hard times is a good troupe leader who possesses very sound management skills, great interpersonal ability which enables him to get along with people of all social levels. The wider his social circle is the more job opportunities are provided. A successful performance of musical folk drama does not only require artistic abilities, but it also needs a combination of talents in administration, management, marketing, public relations, social relations and governmental psychology. In the time of the economic downturn, the business of Isan musical folk drama has inevitably received the impacts. Many troupes have to struggle with the wage reduction in order to get hired. For survival, some troupes even have to lay off some of their staff, otherwise they have to disband. Good management is, therefore, vital in saving Petch Ubon Troupe and giving it opportunities to survive in the Isan or Northeastern Thai society. Good management is indeed needed in reforming this Isan musical folk drama to fit the cultural and economic circumstances in the present.