AbstractThe techniques and methods employed in the spectroscopic characterization of gases, liquids, and solids in the terahertz frequency range are reviewed. Terahertz time‐domain spectroscopy is applied to address a broadband frequency range between 100 GHz and 5 THz with a sub‐10 GHz frequency resolution. The unique spectral absorption features measured can be efficiently used in material identification and sensing. Possibilities and limitations of fundamental and industrial applications are discussed.