Playing in her first tournament since February, Sania went down 4-6 7-5 6-1 to her Thai opponent in a match spread over two days.
Playing her first tournament since her much-publicised marriage to Pakistani cricketer Shoaib Malik, Sania did manage to win the first set against the 14th seed before rain drove her to the locker room on Wednesday.
The break seemed to have done a world of good for Tanasugarn who edged out Sania in the second set to force the decider and dropped just one game in the final set before walking away with a hard-earned win.
Sania wrote on her Twitter page on Thursday that she was happy to be back in the court again.
"(I) Had not imagined I'd be playing after marriage in the first place and here I am at yet another tourney! Hope this answers everyone's concerns," she wrote.
Settled in Dubai post-marriage, Sania also made it clear that she had no "clear cut" plans to retire.
"Will take life as it comes," she wrote.