We report the first terahertz study of the intra-excitonic 1s-2p transition at high excitation densities in GaAs/AlGaAs quantum wells. A strong shift, broadening, and ultimately the disappearance of this resonance occurs with increasing density, after ultrafast photoexcitation at the near-infrared exciton line. Densities of excitons and unbound electron-hole pairs are followed quantitatively using a model of the composite terahertz dielectric response. Comparison with near-infrared absorption changes reveals a significantly enhanced energy shift and broadening of the intra-excitonic resonance. PACS numbers: 78.47.+p, 73.20.Mf, 78.67.De For a many-particle electron-hole (e-h) system in a photoexcited semiconductor, density-dependent Coulomb interactions determine the spectrum of its lowest-energy elementary excitations. At sufficiently low densities and temperatures, charge-neutral excitons form whose ground state excitation is the transition from 1s to 2p levels. These bound states are modified by many-body effects at high densities [1]. An important phenomenon in this context is the excitonic Mott transition: Driven by decreasing interparticle distance, excitonic bound states ultimately cease to exist such that a conducting plasma of unbound e-h pairs prevails [2,3,4,5]. Quasi twodimensional (2D) excitons in quantum wells, due to large binding energies and sharp optical resonances, are particularly suitable to study high-density many-particle effects of excitons [6,7].Numerous studies have investigated the near-infrared excitonic resonances just below the semiconductor band edge, and their broadening, bleaching, and energy shift due to photoexcited e-h pairs (see e. g. [8,9,10,11,12,13,14,15,16]). Broadening occurs via collisional interactions [8]. The energy shift is more subtle: with increasing density, phase-space filling and screening induce both a renormalization of single-particle states (and thus the band gap) as well as a reduction of the exciton binding energy [9,10]. These two contributions counteract and cancel exactly in the three-dimensional case, where no shift of the exciton line is observed [11]. In quasi-2D systems, a small "blue" or "red"-shift remains depending on the conditions [12,13,14,15]. Hence, it is difficult to determine the density dependence of the exciton binding energy from such measurements.Terahertz (THz) spectroscopy, in contrast, constitutes a fundamentally different approach to study manyparticle states. Transitions between internal states of excitons occur in this spectral region, providing a direct measure of exciton densities and binding energies [17,18,19,20,21,22]. A recent THz study investigated the transient conducting and insulating phases that occur upon formation and ionization of excitons [21]. Furthermore, THz radiation is equally sensitive to the ultrafast dynamics of many-body correlations of unbound e-h pairs [23]. Thus, the interplay between optically generated excitons and unbound e-h pairs becomes directly observable. Until now, however, THz studies inves...