Hans Fredrik Lennart Neij, known to hackers as TiAMO, was detained in the north-eastern Thai town of Nong Khai.
He was subject to an international warrant after he was convicted in 2009 of aiding copyright infringement.
Pirate Bay, which offers an expansive list of links to pirated content, is one of the world's most-visited sites.
The 36-year-old Swede was convicted by a Swedish court five years ago.
He and three others were given one-year sentences and ordered to pay $3.6m (£2.4m) in damages.
Neij fled Sweden whilst on bail.
"Mr Neij was detained ... while trying to cross into Thailand from Laos where he had been living since 2012," Thailand regional police chief Chartchai Eimsaeng told reporters.
Neij had been living in Laos since 2012 and travelled nearly 30 times to Thailand, where he has a house on the resort island of Phukat, Maj Gen Eimsaeng added.
Another Pirate Bay co-founder, Gottfrid Warg, was arrested in Cambodia in 2012 and sent back to Sweden to serve his sentence for the same conviction, as well as face a separate hacking trial in Denmark.
Last week, he was sentenced by a Danish court to three-and-a-half years in prison for hacking into computers and illegally downloading files from IT giant CSC.
Hans Fredrik Lennart Neij, known to hackers as TiAMO, was detained in the north-eastern Thai town of Nong Khai.
He was subject to an international warrant after he was convicted in 2009 of aiding copyright infringement.
Pirate Bay, which offers an expansive list of links to pirated content, is one of the world's most-visited sites.
The 36-year-old Swede was convicted by a Swedish court five years ago.
He and three others were given one-year sentences and ordered to pay $3.6m (£2.4m) in damages.
Neij fled Sweden whilst on bail.
"Mr Neij was detained ... while trying to cross into Thailand from Laos where he had been living since 2012," Thailand regional police chief Chartchai Eimsaeng told reporters.
Neij had been living in Laos since 2012 and travelled nearly 30 times to Thailand, where he has a house on the resort island of Phukat, Maj Gen Eimsaeng added.
Another Pirate Bay co-founder, Gottfrid Warg, was arrested in Cambodia in 2012 and sent back to Sweden to serve his sentence for the same conviction, as well as face a separate hacking trial in Denmark.
Last week, he was sentenced by a Danish court to three-and-a-half years in prison for hacking into computers and illegally downloading files from IT giant CSC.
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