The Myanmar National Democratic Alliance Army (MNDAA), a Kokang ethnic armed organization, has successfully seized control of the junta’s 41st Infantry Battalion stationed at the entrance of Lashio Town in northern Shan State.

On July 23, the MNDAA reported that more than 300 junta troops, including senior officers holding the rank of lieutenant colonel, had surrendered to its forces.

The remaining junta personnel in Lashio have retreated to the town hall, where they are bolstering their defenses. Meanwhile, the intensity of the conflict is increasing as the MNDAA extends its operations into Lashio's downtown wards, according to a local witness.

"The base of the 41st Battalion has fallen, and that information can be accurately confirmed. Junta soldiers are retreating to the town hall and setting up defensive outposts. Fighting is fierce in Kawnghka Village near Lashio Prison, and Kokang (MNDAA) troops have begun entering the town,” the witness stated.

The MNDAA has confirmed that a total of 317 junta troops surrendered in Lashio. However, no further details have been provided regarding the current military situation within the town.

Currently, Lashio is experiencing disruptions in internet and phone services, while some residents are trapped within the conflict zones.

The MNDAA, along with its coalition allies including the Ta'ang National Liberation Army (TNLA), initiated an offensive against Lashio in early June. Lashio serves as the headquarters of the junta's northeastern military command.

During the conflict, the MNDAA and TNLA declared a ceasefire with the junta from July 14 to 18. The MNDAA later extended this ceasefire until the end of July. Despite the announced ceasefire, fighting continued, leading to MNDAA’s capture of the 41st Infantry Battalion.