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Follow the upper radiator hose (The biggest hose at the top of the radiator) follow it away from the radiator towards the engine. The hose will attach to the "thermostat housing" located somewhere on the engine block. Unbolt the "thermostat housing" and the thermostat is right there. Remove it and install the new one BUT make sure the point is facing the right direction (there should be an arrow on the new thermostat if you don't remember how the old one was), ALSO make sure the new thermostat is not cockeyed where it sits, it must be perfectly flush down in the little recess or else you will break the thermostat housing when you tighten it down. also, you obviously need to get a new gasket for the thermostat housing, some cars use o-rings, some use gaskets, and some use RTV silicone, I don't know what the corolla uses. It's a fairly simple job and shouldn't take long at all.

The above location doesn't apply to the 1600 DX engine.

***Addition: I was working on my 96 'rolla tonight, and I'm certain the thermostat is NOT attached to the upper hose on the radiator. That hose goes straight to the block. Mine's a 96, but I didn't think things changed until the 98s.

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