Heat olive oil in a large cast-iron or stainless steel skillet over medium-high heat. Pat chicken thighs dry with paper towels and season with salt and pepper. Place them skin-side down and sear until the skin is crisp and golden, about 6-8 minutes. Flip and sear the other side for 2-3 minutes. Remove and set aside.
In the same skillet, add the sausage. Break it apart with a wooden spoon and cook until browned and slightly crisp. Remove and set aside with the chicken.
Add the mushrooms to the skillet. Sauté until they release their moisture and start to brown, about 5 minutes. Add the garlic and cook just until fragrant.
Pour in the coconut milk, scraping the bottom of the pan to release any browned bits. Stir in the Italian seasoning and fresh thyme. Let the sauce simmer gently for 3-4 minutes to thicken slightly.
Nestle the chicken thighs and sausage back into the skillet, skin-side up. Spoon some of the sauce over the top. Reduce the heat to low, cover, and simmer for 10-15 minutes until the chicken is cooked through and tender.
Sprinkle with extra thyme or chopped parsley for garnish. Serve hot with rice, mashed potatoes, or warm bread to soak up every drop of sauce.