Apparently, “That’s what he said” means exactly the same as the popular sexual pun, “That’s what she said”, but with a masculine personal pronoun.

This phrase can be used when talking about one’s sexual engagement with a guy. It can be manipulated almost anywhere and everywhere to make seem even a simple dialogue or a sentence, sexual.
For example,

Philippe: “Have you tried that new recipe in an oven?”
John: “Yeah, but it was so big that I could not fit it in.”
Philippe winks: “That’s what he said.”
by Literary Expert March 15, 2019
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when a word/phrase is used in everyday life but can also be used during intercourse.
“ it won’t fit!”
“that’s what she said 😏”

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put it in slowly.”
“that’s what she said.”

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“it’s so small.”
“that’s what she sai- wait what.”
by eznoob November 12, 2020
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A phrase commonly said after a badly worded sentence.
Paul: That’s the wrong hole you idiot
John: That’s what she said
by Y’roue mama November 04, 2020
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