Preheat your oven to 400°F (200°C).
In a large bowl, combine the peanut butter, soy sauce, honey, rice vinegar, lime juice, garlic, ginger, and red pepper flakes. Whisk until smooth and well combined.
Season the chicken thighs with salt and pepper.
Heat the vegetable oil in a large oven-safe skillet over medium-high heat. Add the chicken thighs and sear for about 4-5 minutes on each side until golden brown.
Pour the peanut sauce over the seared chicken, making sure to coat each piece well.
Transfer the skillet to the preheated oven and bake for 20-25 minutes, or until the chicken is cooked through and reaches an internal temperature of 165°F (75°C).
Remove from the oven and let it rest for 5 minutes. Garnish with chopped green onions and cilantro, if desired.
Serve the Thai peanut chicken over cooked jasmine rice or rice noodles, drizzling any remaining sauce from the skillet over the top.