Exploring nanoscale material properties through light-matter interactions is essential to unveil new phenomena and manipulate materials at the atomic level, paving the way for ground-breaking advancements in nanotechnology and materials science. Various elementary excitations and low-energy modes of materials reside in the terahertz (THz) range of the electromagnetic spectrum (0.1–10 THz) and occur over various spatial and temporal scales. However, due to the diffraction limit, a slew of THz studies are restricted to drawing conclusions from the spatially varying THz responses around half of the probing wavelengths, i.e., from tens to a couple of hundred micrometers. To address this fundamental challenge, scanning near-field optical microscopy (SNOM), notably scattering-type SNOM (s-SNOM), combined with THz sources has been employed and is fueling growing interest in this technique across multiple disciplines. This review (1) provides an overview of the system developments of SNOM, (2) evaluates current approaches to understand and quantify light-matter interactions, (3) explores advances in THz SNOM applications, especially studies with THz nano-scale spatial responses employing an s-SNOM, and (4) envisions future challenges and potential development avenues for the practical use of THz s-SNOM.