When should I use a ThreadLocal variable?
How is it used?
Essentially, when you need a variable's value to depend on the current thread and it isn't convenient for you to attach the value to the thread in some other way (for example, subclassing thread).
A typical case is where some other framework has created the thread that your code is running in, e.g. a servlet container, or where it just makes more sense to use ThreadLocal because your variable is then "in its logical place" (rather than a variable hanging from a Thread subclass or in some other hash map).
On my web site, I have some further discussion and examples of when to use ThreadLocal that may also be of interest.
Some people advocate using ThreadLocal as a way to attach a "thread ID" to each thread in certain concurrent algorithms where you need a thread number (see e.g. Herlihy & Shavit). In such cases, check that you're really getting a benefit!