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There are multiple reasons for that. First of all the thermostat must installed in the proper way. There is a valve which must at it's maximum vertical position. Also if you have bought an aftermarket part you might made a mistake. It's because aftermarket parts a little higher opening temperature. You have two choices: first one is to buy the thermostat from Toyota; second is to but so called "low temperature thermostat" which opens before required temperature is reached. If you live in a cold state you need to buy OEM part because low temperature thermostat effectively decreases temperature of the heating system.

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Q: Why would a 2000 Camry overheat after replacing thermostat replaced upper hose gasket after a leak developed in that connection. now temp indicator cycles between mid and overheating?
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