Police were called to the scene, a green-plate taxi parked on Phra Barami Rd near Kalim Beach, at about 1:30pm.
Quick to arrive were officers from Patong Police, led by Patong Police Chief Col Chalermchai Hirasawat.
The object of concern was visible on the left rear seat of the taxi, a black Toyota Fortuner.
After thoroughly examining the vehicle, Pol Col Chalermchai used a flashlight to inspect the object.
Once he was confident it posed no threat, he picked it up and discovered it was a lighter designed to look like a grenade.
The discovery brought immediate relief to onlookers and officials at the scene. Pol Col Chalermchai advised the taxi driver to remove the lighter from the vehicle to avoid further alarm, noting that people who saw it had mistaken it for a real explosive and called the police.
While the incident turned out to be a false alarm, it highlighted the vigilance of the local community and the quick response of Patong Police, observers noted.