Prahllad Nataka is a prominent devotional theatre tradition of southern Odisha, particularly concentrated in the undivided Ganjam district and adjoining regions of Andhra Pradesh. While its literary evolution reflects royal patronage and regional adaptation, the continuity and institutional consolidation of the form have been primarily sustained through the guru–shishya parampara (teacher–disciple tradition). This study examines how decentralized pedagogical networks of Gurus transformed Prahllad Nataka from a localized devotional performance into a structured regional theatre tradition. Drawing upon historical accounts, oral narratives, and field-based documentation of Guru lineages, the paper analyzes the processes of revival, reform, and standardization initiated during the early twentieth century. Particular attention is given to the role of reformers who systematized rāga–tāla patterns, regulated performance duration, refined costume codes, and preserved ritual discipline. The Guru in Prahllad Nataka functions not merely as an instructor but as director, composer, ritual custodian, and community leader, thereby embodying a multidimensional cultural authority. The study argues that the survival of Prahllad Nataka in the face of modernization, economic precarity, and institutional neglect is largely attributable to its embedded guru-centric transmission model. By foregrounding lineage as a living institution, the article highlights the significance of ritual pedagogy and community-based knowledge systems in sustaining traditional theatre forms in contemporary South Asia.