The thesis presents the impact of forest management by the state sector on identity change in the ethnic group through the cases involving national forest encroachment in order to reflect the changes in the ethnic identity. It was found that the group changed their religion in addition to changing their lifestyle. Although some remained Buddhists and animists and tried to negotiate on national resource management by building Palaung weirs, others became Protestants and changed their perspectives and lifestyle in accordance with Christianity as well as creating a network with Christian communities in Chiang Mai. Despite their religious differences, the ethnic group tried to maintain their ethnic identity.