Regime forces abandoned Moebye in southern Shan State and a Karenni National Defense Force spokesman called the troops weak.
Fierce fighting in southern Shan State resulted in junta forces pounding the town of Moebye with air and artillery strikes.
Fierce fighting in southeast Myanmar has left at least 40 junta soldiers dead since the beginning of September.
Battles have been reported for more than two weeks in Pekon Township as junta attacks continue.
Large numbers of troops have been deployed to Pekon Township in Shan State on the border with Kayah State with increasingly large clashes reported with resistance forces.
Women and children killed and injured after regime forces bombard the town of Mobye in southern Shan State.