 In 1996, Sudarat was once again elected MP and was the only member to be elected from Palang Dharma.Two years later, in 1998, Sudarat co-founded the Thai Rak Thai Party together with Thaksin Shinawatra and 21 others, including Somkid Jatusripitak, Thanong Bidaya, Purachai Piumsombun, Thammarak Isaragura na Ayuthaya, and Prommin Lertsuridej.Sudarat was appointed Deputy Leader of Thai Rak Thai

In the 2001 election, Sudarat was elected a Member of Parliament and was appointed Minister of Public Health on February 17, 2001 under the Thaksin government.