Tamarind ( Tamarindus indica L.) seed kernel polysaccharide (TSKP), a xyloglucan-rich biopolymer, is gaining prominence for its functional relevance in food and industrial hydrocolloid applications. This study investigated the impact of thermal processing conditions on the extraction efficiency, structural properties, and functional performance of TSKP. Thermal treatment significantly influenced extraction behaviour (p < 0.05), producing measurable differences in shelling efficiency, moisture content, pasting properties, and colour development. Optimal shelling efficiency (54.2–58.3%) was achieved at 180–210 °C, indicating an effective balance between thermal energy input and kernel separation. Moisture content ranged from 3.51 to 6.93%, demonstrating the sensitivity of heat–moisture interactions. Peak viscosity values (2969–5378 cP) indicated thermally induced modifications to the polysaccharide matrix, while progressive colour development was attributed to Maillard and caramelization reactions. FTIR spectra under optimal processing conditions (210 °C, 25 min) showed characteristic polysaccharide absorption bands at 3329.6, 2918.6, and 895.1 cm⁻¹. Similarly, ¹H NMR resonances at δ 3.20–4.20 and 5.20–5.50 ppm confirmed the purity and molecular identity of the extracted xyloglucans. Moderate thermal conditions yielded polysaccharides with enhanced functional properties, including a high water-binding capacity (480–757%) and swelling power (250–857%). The findings demonstrate that controlled thermal processing can be used to optimize xyloglucan extraction while preserving desirable structural and techno-functional properties, supporting the development of high-performance hydrocolloids for food and related applications