The primary purpose of the study is to critically analyze the film industry of Laos from a political economy perspective. The different facets of the film industry are examined by linking them to the system of governance, economic and political factors and the historical context in which the industry has developed. The challenges in its development and the reasons for the same are mapped through a 11-year period between 2008 and 2019. The study reveals that the constraints faced by the industry as a whole and the individual filmmaker affect not only the quantity of films but also the content of the films. The most important conclusion that is drawn is that the current structure of political economy has an effect on the diversity of film themes. Through the powerful of tool of censorship, the communist government dictates the film content. But there are many indirect and intangible effects of the political-economic system that have also led to the restriction of themes. The study finds that the general effect of the limitations of the current system is a heavy leaning towards entertaining themes and the marginalization of artistic themes.