$this

$this is a variable that represents the current object. It is different in each object, each method.

$this is also called a pseudo-variable. It is never explicitely set, but is available as soon as the method starts.

$this cannot be unset, nor assigned a different value than the current object. This means it cannot be used as an argument, for example.

There is no special variable called $that.

<?php

class x {
     private $y = 1;

     function foo() {
             return $this->y;
     }
}

?>

Documentation

See also PHP $this, The $this keyword