Recent development of the terahertz time domain spectroscopy (THz-TDS) and its application to solids have been reviewed. This spectroscopy is unique in that the time-domain wave forms are measured at first and the complex optical constants are deduced directly by the Fourier transformation of them without resort to the Kramers-Kronig analysis. Various types of the THz-TDS systems are briefly described. Applications of the THz-TDS to various solids, i.e., semiconductors, superconductors, polymers, photonic crystals, and so on are also presented to demonstrate how widely this spectroscopy is applicable to characterization of solids.