The vortex phase diagram and superconducting properties of air‐annealed FeTe0.8S0.2 single crystals are investigated. The annealed samples exhibit a superconducting transition, as confirmed by temperature‐dependent resistivity measurements. The thermally activated energy is calculated from the magnetotransport measurements, and the analysis shows that as the magnetic field increases, there is a crossover from single to collective vortex pinning. The vortex phase diagrams have been determined by analyzing magnetic field‐dependent resistivity, revealing the transitions from an unpinned vortex liquid region to a pinned vortex liquid state and further transition from this pinned state to a vortex glass state. Temperature‐dependent magnetization measurement determines the superconducting volume fraction. The critical current densities, as a function of the magnetic field (JC(H)), have been estimated from the magnetization versus magnetic field loops measured at various temperatures. Bean's critical state model estimates the JC values, and for an optimized annealed crystal, the self‐field JC at 2 K is . The normalized pinning force density in the samples is determined using the Dew Hughes model to identify the pinning mechanisms. The temperature‐dependent JC data analysis indicates the presence of ‐pinning in the samples. Theoretical models analyze experimental observations to understand the vortex pinning mechanisms.