Optical parameters which macroscopically characterize optical properties of materials indirectly reflect microscopic peculiarities of materials. Accurate extractions of optical parameters are significant for the research of microscopic behavior and macroscopic responses of materials. In recent years, as a new spectral analysis method, terahertz time-domain spectroscopy (THz-TDS) technology has become a research hotspot. Due to the low THz radiation energy and narrow pulse width (picosecond range), THz-TDS technology is nondestructive with high-temporal-resolution when being used to extract optical parameters of samples. This paper summarizes optical parameters extraction methods by using THz transmission and reflection spectroscopy technology, emphatically introduces several classic methods and analyses, along with their respective merits and demerits, and finally discusses the challenges of THz-TDS technology in optical parameters extraction. In conclusion, the transmission methods are adaptive for measuring substances which slightly absorb terahertz radiation, whereas the reflection methods are suitable for measuring materials with strong absorption capacity.