The 20-year-old woman, believed to be from the Highlands, was attacked in the Southern Provincial capital of Nakhon Sri Thammarat in the early hours of Saturday.
Police said she was taken by four Thai men who were driving around in a pick-up truck when they spotted her and dragged her away as she left a restaurant.
Officers said the woman admitted she was drunk and had been deserted by a fellow traveller from South Africa after both had been advised to leave the Nakhon Vientiane restaurant.
The men were reported to have taken her to the balcony of a neighbouring building and then attacked her.
It is understood the woman was on a break from her studies and had applied for a job at a local school.
Reports said she had been in the city for two weeks with her boyfriend when she was attacked on Saturday morning.
A Foreign Office spokesman said: "We are aware of a British national having been involved in a serious assault in Thailand. We are providing consulate assistance at this difficult time."