Local residents spotted Johannes Grasser suspended from the near vertical cliff at around 8.30am.
Video shows Mr Grasser attempting to free his parachute from the rock to the sound of shocked gasps from onlookers.
Video credit: Nattawat Phoom
He was seen hanging from the cords of his parachute which had become snagged on the edge of a rock after winds blew him off course.
The 28-year-old was stuck for more than five hours while a team of rescuers in the southern Thai province of Phattalung worked to reach him.
After a hike to the top of the cliff, the Phattalung Rescue Organisation lowered a rescuer down to Mr Grasser at around 2pm.
Authorities said the parachutist suffered "light injuries" from the impact after hitting into the cliff face.
“The rescue took so long because it took us hours to get up to the high spot where he jumped off the cliff,” said Kittipong Chusongseang, who was part of the rescue team.
“It was a long hike up and a long walk down.”
Mr Grasser was not deterred by the ordeal and returned to jump again with his wife on Monday.