Both are used - the language itself can be called Lao or Laotian. Lao is better to use though, due to historical reasons. Lao is more polite to the locals (general English speakers use them interchangeably).
Michelle
https://www.italki.com/michelle
2020년 4월 2일
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If you are from Laos you are Lao in the Lao language but in other languages like English they say Laotian.