Liquid crystal (LC) is an excellent tunable functional material which can be controlled by the external stimulus such as electric field, magnetic field and temperature. Terahertz (THz) radiation in a frequency range of 0.1 10.0 THz, has enormous advantages such as a low photon energy, sensitivity to crystal lattice vibration, magnetic spins, hydrogen bonds, intermolecular interaction, and water, and high transparency to non-conducting materials. The THz technology, therefore, has great potential in a diverse range of applications from spectroscopy, security screening to biomedical technology and high-speed wireless communication. But the development of high-performance LC based tunable THz functional devices is still in its infancy stage. The dispersion of LC refractive index induces a comparatively low birefringence in the THz regime. The lack of transparent electrodes makes the electric tuning of LCs difficult to achieve. To achieve certain modulations requires a very thick THz layer, leading to several disadvantages such as high operating voltage, slow response and poor pre-alignment. In this paper, we first present the research progress of large birefringence LCs in THz range. A room-temperature nematic LC NJU-LDn-4 with an average birefringence greater than 0.3 in a frequency range from 0.5 to 2.5 THz is shown in detail. This kind of LC can remarkably reduce the required cell gap, thus reducing the operating voltage and response time. Then we summarize varieties of conventional THz devices based on LC. Many electrodes are used for THz range. Graphene which can be used as a perfect transparent electrode material in THz band is proposed. Not only tunable transmissive but also reflective THz waveplates are introduced. The thickness of the LC layer of the reflective one can be reduced to ~10% of that needed for the same phase shift at a given frequency in a transmissive waveplate. The same tunability as that in the transmissive type just needs half the thickness. We also introduce that LC can generate THz vortex beam based on a photopatterned large birefringence LC. In the area of LC based versatile THz metamaterial devices, the adjacent units of a metasurface layer, such as a fishnet or grating, are usually connected to each other which may cause low-quality (Q) factor and polarization sensitivity, which is undesirable. We emphasize a graphene-assisted high-efficiency tunable THz metamaterial absorber. Few-layer porous graphene is integrated onto the surface of a metasurface layer to provide a uniform static electric field to efficiently control the LC, thereby enabling flexible metamaterial designs. The THz far-field and near-field with large modulation and fast response are realized. A magnetically and electrically polarization-tunable terahertz emitter that integrates a ferromagnetic heterostructure and the large-birefringence liquid crystals is also demonstrated to be able to generate broadband THz radiation and control the polarization of THz waves perfectly as well as LC based THz reflectarray. Last but not least, a temperature-supersensitive cholesteric LC used for THz detection is shown. It can not only measure the beam profiles but also detect the power values of THz waves generated from a nonlinear crystal pumped by a table-top laser. Quantitative visualization based on not only the thermochromic but also the thermal diffusion effect, can be used conveniently and effectively at room temperature. In this review, we summarize the latest progress of liquid crystal materials and components in THz and discuss the possible prospects of the combination of liquid crystal technology and THz technology. We envision that LCs will play a unique role in THz sources, THz functional devices and THz detectors.