Nadal shot out of the blocks during the quarter-final clash to take the first set in just 26 minutes.
Thiem did not have one game point as the world No 1 rushed to a 6-0 win.
It was not until the 10th match that the Austrian held serve, but by that point he was already staring defeat in the face, trailing 6-0, 3-0.
Nadal was exemplary in every shot he picked as he proved his previous injury problems are well behind him.
The world No 1 will now face Grigor Dimitrov in the semi-finals.
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Sky Sports pundit Henri Leconte thinks Nadal will go all the way to defend his crown.
"It is so hard to be at that level and it is physically he is very impressive," he said.
"There is more pressure on Rafael Nadal than other players but he always plays his best and does not appear to feel the pressure.
"Every day he is completely different to a human being."
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