Armed troops and military vehicles topped with machine guns have been deployed in central Bangkok after the army declared martial law across Thailand.
Soldiers have been seen in the city's retail and hotel district, and the army commandeered television stations to broadcast their message to the nation.
They also surrounded the national police headquarters in Bangkok and banned protest marches.
Military chiefs have denied staging a coup and claims it is trying to restore order after six months of protests and political unrest that have left Thailand without a fully functioning government.
Soldiers are taking charge of public security to protect against any more violent protests, said army chief General Prayuth Chan-ocha.
General Prayuth Chan-ocha broadcast his message to the nation "To bring back peace into all groups and all sides as soon as possible, I've used legal sections two and four to announce martial law over all of Thailand," said the General.
Protesters have been told to stay put and the country's media will also be censored, said the army, who told the Thai people not to panic.
Thailand has been in a state of upheaval since 2006, but the latest unrest began in November when anti-government protesters tried to oust former prime minister Yingluck Shinawatra.
The protesters railed against a government amnesty bill they said was designed to help former leader Thaksin Shinawatra - Yingluck's brother - avoid being jailed for corruption.
Yingluck Shinawatra was finally removed earlier this month for abuse of power - along with nine ministers.
TYingluck YYYYYUYYYYYYYYYYYYHowever, the move has done little to dampen disquiet against the interim government.
The army's surprise announcement comes a day after acting prime minister Niwattumrong Boonsongpaisan refused to step down.
Hundreds of people have been injured and 28 have died in the last six months of protests.
Regional neighbours have already expressed concern at the army's seizing of power, with Japan "strongly urging" self-restraint and calling for "sincere negotiations".
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