A Permo-Triassic volcanic arc system, the Sukhothai Arc, is recognised between the Indochina and Sibumasu continental blocks. The Chanthaburi terrane is here interpreted as a fault-detached, highly disrupted southern segment of the Sukhothai Arc, occupying part of southeastern Thailand and extending into Cambodia. The Klaeng tectonic line is defined as the boundary between the Chanthaburi terrane and Sibumasu block. The stratigraphy of the Chanthaburi terrane is compared with that of the Sukhothai terrane in Northern Thailand. The Late Palaeozoic-Mesozoic sequences of these two volcanic arc terranes in the Sukhothai Zone share important similarities, but show marked contrasts to those of the Sibumasu and Indochina blocks, where the Late Permian-Triassic is largely absent due to the Indosinian I unconformity (western Indochina) or is dominantly carbonates with little terrigenous clastic input (Sibumasu). There is no clear evidence of pre-Carboniferous sedimentary rocks for either the Sukhothai or Chanthaburi terranes. Late Permian lyttoniid brachiopod shale near Klaeng in the Chanthaburi terrane was revisited. The brachiopod, previously reported as 'Leptodus', is re-identified to 'Oldhamina', the genus previously known, elsewhere in Southeast Asia, only in the Huai Tak Formation of the Sukhothai terrane. 'Oldhamina' in Thailand is confined to the Sukhothai Arc. The marine stratigraphy of the Sukhothai Arc is represented by a Permian-Triassic lithological succession of mixed carbonates and siliciclastics, with common volcanic material. The Late Permian and Triassic litho- and biostratigraphy of the Chanthaburi terrane are comparable with the upper Ngao and Lampang groups of the Sukhothai terrane; in particular, they share similar successions from 'Oldhamina' brachiopod bearing shale to 'Palaeofusulina-Colaniella' foraminifer bearing limestone in the latest Permian. Marine depositional conditions were terminated on the Sukhothai Arc by end-Triassic times, later than on the Indochina block (Late Permian) but earlier than on the Sibumasu block (Jurassic/Cretaceous).