There are different theories about why Funan disappeared. It may have been attacked by the Khmer, who we will discuss in a later unit. They may also have been attacked by Chenla, which was a neighboring kingdom. Another explanation has to do with the Malay people who lived to the south.

Malay people went to Funan to trade things like camphor, spices, and nutmeg. The Chinese noticed how good they were at sailing and shipping goods across the ocean because their sailing techniques and technology was very good. Furthermore, improvements in navigation also allowed for ships to travel greater distances than before. Because of this, the Chinese may have thought it would be better to change the Indian Ocean Trade route. Instead of going to Funan and then crossing the Isthmus of Kra, merchants eventually began sailing around the Malaysian peninsula and through the Strait of Malacca. By the 6^th century, this was the primary route of trade on the Indian Ocean, causing Funan to become less important and eventually to disappear around 550 AD. A new kingdom soon took the place of Funan, and it was located on the Malaysian peninsula.