John Paul Jones, 51, from Queensland, went to a hospital in Surat Thani on April 11 complaining of severe stomach pains. An X-ray revealed 60 mysterious packages in his stomach, which turned out to be 800 grams (28 ounces) of hash.
Police said he had intended to sell the drugs at a beach party in the resort of Ko Phangan.
Three of the condoms burst, fatally damaging his colon and liver, Thai media quoted doctors as saying.
The Department of Foreign Affairs and Trade in Canberra said Jones, who was charged while in hospital with possession of drugs, died last Saturday of internal infections.
If he had survived, he would have faced up to 20 years in prison on drug trafficking charges, police said. In 2006, he was charged with possession of hashish but was acquitted.
