One resident and businesses had written about their concerns to the council, which met on Monday.
“I write again in despair over the noise we in the town centre are subjected to,” wrote the resident.
“We have had the Fringe, which must be the longest in the country, for three weeks. Every weekend and most weekdays we have ‘noise’ from the Square.”
The resident also spoke of a booming megaphone during the 10K run held at the beginning of July. The organisers of the event have since handed over the reins to a new company.
Councillors agreed to approach the new organisers and ask about their proposals for the next event when discussions can be held.
Town councillors also decided not to impose a non-amplified, acoustic-only rule but to ask Shropshire Council about limiting the number of decibels.
Buskers and performers, whom the council says make a "lovely contribution to the ambiance and vitality of the town" will be limited to one hour.
Former town councillor Andy Boddington, who represents Ludlow North on Shropshire Council, said: "I think it is right that the town council talks to event organisers.
"Most issues could have been resolved by talking to the organisers instead of having an item on a council agenda. I have found event organisers to be most flexible."
Councillor Boddington said he thought having a decibel limit on performers could be difficult to measure and to enforce.
He added that he is a big supporter of town events and that only one resident had complained.
"It is important that we keep the town centre alive," he said. "It has been hit quite badly by the pandemic and we are still down on trade overall.
"This town survives on its visitor numbers and we need these events. We have to expect some noise but the 10K is pretty much done by 10pm and events in the Castle have to end by 11pm, which I think is fair in a town."