Due to new Myanmar government’s policy on industrial investment sourced from abroad, government has to allocate some areas for resettlement of foreign established factories and Pyi Gyee Tagon Township in Mandalay division has been selected to serve this purpose. Within the context of society which has implanted traditional way into their life, traditional medicine has to receive a new challenge from western way of medication which gradually inserts itself into every part of health function in people’s way of life. Therefore, this research output is aimed at an investigation of following objectives: Firstly, to study policy and situation of integration of traditional medicine with modern medicine of health care at Pyi Gyee Tagon Township in Mandalay Division Secondly, to analyze external and internal factors that affects community health care improvement toward integrated traditional medicine practice Thirdly, to present positive scenario(s) for integration of traditional medicine with modern practice of health care in the mentioned area, and Fourthly, to develop a working network between Myanmar and Thailand to improve a traditional medicine system between two countries Due to facts that this type of research is designed to forecast what will occur in the near future, therefore research methodology introduced to this research practice is called Ethnographic Delphi Future Research (EDFR) which had been developed since 1979 to predict what will occur in the future. Accuracy of research findings is totally based to a reliability of experts who takes part in a process of data collection. In order to follow research methodology, all experts were deliberately selected as mentions by Myanmar traditional medicine advisors from the University of Traditional Medicine. It has been accepted from the beginning that any future research will confront with uncertainty of solution, this research is no exception and the way of increase validity of research answers was to add some other techniques like SWOT analysis and Scenario analysis in research findings. With an EDFR technique of investigation it reveals that future of traditional medicine in a transitional period may be depicted as follows: Firstly, it was indicated that policy and situation of integration of traditional medicine with an influx of modern medicine of health care at Pyi Gyee Tagon Township in Mandalay Division made a status of traditional medicine in the area of study very unstable and unsecured since their position in medication function is at inferior status comparing with modern medicine. Many young generations started to reject traditional way of medication and said that traditional medicine is deserved for the poor and lower class in the society not for young generation. Secondly, on a study of external and internal factors that affect community health care improvement toward integrated traditional medicine practice, 2 types of techniques, namely EDFR and SWOT analysis were served in analytical function. It reveals that strength of traditional medicine is mainly based on trust of Myanmar people that some diseases like chronic sickness should be cured by this type of medication. Weakness of traditional medicine, mentioned by experts, is mainly derived from unclear policy from authority. As an external factor, opportunity of traditional medicine is depended upon a concrete belief of people on this type of health care and effective adjustment to modern world. And, finally, threats of i traditional medicine come from in an increase of popularity of modern medicine and trend of young generation to refuse traditional way of treatment Thirdly, regarding to a trial to present of probable scenario(s) for integration of traditional medicine with modern practice of health care in the mentioned area from positive and negative aspects and it reveals that as follows: Negative Scenario: With an establishment of industrial zone in the mentioned area, people change their occupations from cultivation to become daily-wage workers and they have to suffer from occupation diseases in which traditional medicine was not applicable to function properly. Therefore, it was possible that traditional medicine would find no place in modern society. Positive Scenario: If traditional medicine received a full support from the government to protect and promote academically, functionally and financially, it could survive in the midst of change and become popular again. Most probable that traditional medicine might play a new role as an alternative way of health care. Probable Scenario: It is possible that there was a clear separation of treatment divisions in medication, for example, traditional medicine was positioned for chronic diseases while modern medicine was for acute diseases. Both shared their experiences and combine ways of treatment. Lastly: Developing a working network between Myanmar and Thailand to improve traditional medicine system between two countries: Due to disparity of development and some cultural different barriers between the two it is suggested that academic cooperation can be bridge to link them together. This sort of functions can be in form of exchange of academic and students, and co-working in research but it has be admitted that language will become a major problem of collaboration. To fulfill this mission, agencies in Thailand should play an active role to support this mission and research finding or right of patent should be shared by both parties. Finally, it should be repeated here that all finding found in this report are mainly based upon EDFR research technique and some other methods like SWOT analysis and scenario technique. Therefore, quality of the research must be judged from the mentioned process.