Rehydrate mushrooms according to package directions. Gently rinse morels to remove any grit; pat dry with paper towels. Cut large morels in half or quarter; leave smaller morels whole.
In large skillet over medium-high heat, melt butter. Add in mushrooms and bell peppers. Sauté for 2 minutes.
Add in snap peas, shallots and garlic. Salt and pepper to taste. Continue sautéing until snap peas are crisp-tender (about 3-5 minutes).
Remove from heat and toss with fresh thyme.