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From what I've gathered googleing and talking to co-workers, (im about to try this afternoon to replace mine). Follow the hoses from the radiator, one will go to the water pump, the other will go to the engine/thermostat. Once the thermostat is located, there is a houses over it that needs to be removed to get at the thermostat. I have also read you should drain all the coolant out before starting, one or two people I've talked to said you can leave the coolant in so preceed at your own risk. (im going to try and drain mine)

Remove the housing cover, remember how the thermostat is orientated in the engine for later installation, replace the thermostat putting the new one in the same way the old one came out. Replace housing and hoses, refill the coolant, run the engine and heater to bleed out any air. Once the engine cools down, check the coolant level again.

Hope that helps.

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Q: How do you replace the thermostat located on a 1983 Toyota Tercel?
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