The man, Mr Francesso Valluzzi, 71, reported to airport security and Sakoo Police that he had lost his bag after being dropped off by taxi at his accommodation in Kamala.
Mr Valluzzi told officials that among the lost items were over 3,000 Euro (about B111,000), a notebook computer, camera, passport and B5,000 in Thai currency.
While police were investigating the incident, a taxi driver, Mr Dusit Somprayoth, 37, came forward with the lost items which he said had been left in his taxi.
Mr Dusit went to the Kianseng Guesthouse in Nai Thon Beach and returned the items to Mr Valluzzi.
After checking his bag, Mr Valluzzi confirmed that all his belonging were intact and thanked the police for their help and Mr Dusit for returning his items.
Mr Dusit explained that he picked up Mr Valluzzi at the airport at around 11am today and dropped him off at a guesthouse in Nai Thon.
“I did not pay much attention as to whether the tourist had left anything behind after I had dropped him off so I left.
“I only noticed a bag when I got to my home in Rawai so I returned to the guesthouse to bring it to him,” he said.
Mr Dusit said that Mr Valluzzi gave him a cash reward for his honesty but did not reveal how much.