Are local variables, method parameters,return values thread-safe in java ? What about instance variables ?

You needn't worry about multithreaded access to local variables, method parameters, and return values, because these variables reside on the Java stack. In the JVM, each thread is awarded its own Java stack. No thread can see or use any local variables, return values, or parameters belonging to another thread.

but you need only be concerned with instance and class variables when you worry about thread safety. Because all threads share the same heap, and the heap is where all instance variables are stored, multiple threads can attempt to use the same object's instance variables concurrently.