Terahertz (THz) technique has become one of the most promising analytical methods and has been applied in many fields. Attenuated total reflection (ATR) technique applied in THz spectroscopy and imaging has been proven to be superior in functionalities such as modulation, sensing, analyzing, and imaging. Here, we first provide a concise introduction to the principle of ATR, discuss the factors that impact the ATR system, and demonstrate recent advances on THz wave modulation and THz surface plasmon sensing based on the THz-ATR system. Then, applications on THz-ATR spectroscopy and imaging are reviewed. Towards the later part, the advantages and limitations of THz-ATR are summarized, and prospects of modulation, surface plasmon sensing, spectroscopy and imaging are discussed.