The distressed debt market in Thailand has undergone significant growth over the years, reflecting its evolving landscape. NPLs have been increasing at a rate of approximately 2% annually since 2016, and this figure is expected to continue rising. Despite this upward trajectory, the market faces substantial challenges that hinder its full potential. Some of the key challenges include a notable reliance on Asset Management Companies (AMCs) for NPL resolution, insufficient participation of new and diverse investors to increase market liquidity, and limitations in trading facilities for the bond market, hindering the growth of alternative solutions that could potentially broaden the investor base. The key question remains: how can Thailand navigate these challenges to establish a more robust distressed debt market? Lessons gleaned from international case studies suggest that a pivotal factor in nurturing a successful market is the role of the regulators and the fundamental shift in mindset towards market-driven practices. This shift is manifested through comprehensive reforms of the regulatory framework and collaboration with various government bodies and private sectors to facilitate expansion of investor participation and increased market liquidity. The report aims to provide stakeholders within the Thai capital markets ecosystem with in-depth insights explicitly focused on developing long-term solutions for distressed debt. This will be achieved through a comprehensive understanding of the prevailing challenges within the market, the extraction of valuable insights from pertinent global case studies, conducting in-depth interviews with stakeholders, and formulating guidelines aimed to effectively assist Thailand in addressing these issues while augmenting the overall capital market ecosystem