A high accuracy on-chip thermal sensor includes an integrated circuit and sensing elements. The thermal sensor finds application in various mobile and battery powered devices and includes a processor that analyzes a measured temperature signal and decides if the thermal sensor operates in low or high power operational mode, or if the device's CPU is to be reset. A method utilizing the thermal sensor includes making comparisons to two threshold temperatures and operating at low power mode below the first threshold temperature, high power mode between the two threshold temperatures and causing reset if the second threshold temperature is exceeded. Low power operational mode includes a lower clock frequency, lower bias current and lower power consumption. Higher power operational mode is used when the upper threshold temperature is being approached and includes a higher data sampling frequency and more accurate temperature control and uses higher power.