There are two primary symptoms of a faulty thermostat (assuming you mean the coolant thermostat in the engine not the A/C Heater Thermostat). The thermostat can fail in basically two ways:
1) Stuck open - Engine runs colder, heater takes forever to heat up.
2) Stuck closed - Engine runs very hot, then will suddenly drop in temperature, then run very hot again. Or engine overheats constantly. When the engine is hot, feel the upper radiator hose. If it is not hot, you can bet the thermostat is stuck closed. If it is hot, the thermostat may not be stuck close, but not opening at the proper temperature.
Stuck open is annoying, but not dangerous. Stuck close is dangerous and can cause overheating-related damage to your engine.
If you are handy, you can replace it yourself. Otherwise it is an easy job for a mechanic.
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