Under the swift of globalization, Drama Education was introduced from the West to Asia countries- this paper intended to explore the glocalized process and its cultural meaning to local teachers and students using a Taiwanese folktale Water Ghost to develop drama lessons under the collaboration of two drama specialists from UK and Taiwan. It was found that the key points of using a folktale as teaching materials depended on whether it contained culture values and traditions, a complete story with simple story line, interesting characters. In the collaborative work, the UK scholar could not fully understand certain complicated cultural concepts; still, he was able to ＂navigate＂ through cultural borders within the imaginative story drama space and open attitude, and help in clarifying certain concepts from his local drama colleague. In terms of the transformation of curriculum and teaching, no matter what it was before, in a workshop or classroom setting, it was necessary to make certain adaptations to lesson plans, such as warm-ups, drama strategy, guided questions and activity sequences, depending on the participants’ experiences, ages and learning conditions. The analysis revealed that both teachers and students responded well in the discussion. However, their understanding and interpretations toward local cultures varied with their social contexts and life experiences. In particular, most discussion from the fifth graders reflected a tendency toward cultural hybridity-＂personal experience＂ mixed with ＂traditional knowledge＂ and ＂popular visual media impressions＂.