To further understand how tactile information is carried in somatosensory cortex (S1) and the thalamus (VPL), and how neuronal plasticity after neuroprosthetic stimulation affects sensory encoding, we chronically implanted microelectrode arrays across hand areas in both S1 and VPL, where neuronal activities were simultaneously recorded during tactile stimulation on the finger pad of awake monkeys. Tactile information encoded in the firing rate of individual units (rate coding) or in the synchrony of unit pairs (synchrony coding) was quantitatively assessed within the information theoretic-framework. We found that tactile information encoded in VPL was higher than that encoded in S1 for both rate coding and synchrony coding; rate coding carried greater information than synchrony coding for the same recording area. With the aim for neuroprosthetic stimulation, plasticity of the circuit was tested after 30 min of VPL electrical stimulation, where stimuli were delivered either randomly or contingent on the spiking of an S1 unit. We showed that neural encoding in VPL was more stable than in S1, which depends not only on the thalamic input but also on recurrent feedback. The percent change of mutual-information after stimulation was increased with closed-loop stimulation, but decreased with random stimulation. The underlying mechanisms during closed-loop stimulation might be spike-timing-dependent plasticity, while frequency-dependent synaptic plasticity might play a role in random stimulation. Our results suggest that VPL could be a promising target region for somatosensory stimulation with closed-loop brain-machine-interface applications.