Leave two or three Thai peppers on the plant during the summer harvest season. Choose peppers with glossy, intact skin and a 1- to 3-inch length. Keep peppers from multiple plants, if possible, to increase the genetic diversity of your seed stores.
Care for the Thai pepper plant as usual while the peppers ripen and mature. Avoid splashing water onto the fruit because it may cause fungal or bacterial growth on the skin, which can weaken its integrity and cause the seeds to moulder.
Leave the Thai peppers in place until they have ripened to a solid, lipstick red and the skin begins to darken and wrinkle. Do not pick peppers with any green on the skin because the seeds might not be fully ripe.
Put on rubber gloves before handling the peppers to avoid contact with the capsaicin-rich flesh and seeds, and work in a well-ventilated area. Cut off the stem-end of the pepper with a sharp knife. Cut the pepper in half lengthwise with the same knife and pry the two halves apart.
Scrape out the spongy white membrane and seeds with a spoon. Pick the seeds out of the membrane and discard it. Inspect the seeds and discard any that have any black on them, a shriveled appearance or that are noticeably smaller than the other Thai pepper seeds.
Place the Thai pepper seeds in a bowl of room temperature water overnight to determine which are viable. Scoop out the seeds that float and throw them away because they will probably not germinate. Collect the seeds that sink to the bottom.
Spread out the Thai pepper seeds on a seed-drying screen or a paper towel in an airy, warm location out of direct sunlight. Dry the seeds for two or three days, or until they feel completely dry.
Store the Thai pepper seeds in an envelope or an airtight glass container. Label the container with the seed type and the date of collection and place it inside the refrigerator for storage. Use the seeds within four years to ensure the best germination rate.