Fe3O4 is considered to be a promising material for terahertz spintronic applications as well as for stealth technology. However, the optical properties of Fe3O4 in the thin film form at terahertz frequencies are not reported in literature. In this article, we present the frequency and temperature dependence of dielectric permittivity (ε1) and optical conductivity (σ1) of Fe3O4 films deposited on Si substrate. The σ1 of these films show absorption peaks related to charge localization and shallow impurities. It is also observed that the Fe2O3/Fe3O4 composite films have large σ1 and ε1 indicating their potential use for stealth technology applications. The overall optical properties are found to depend strongly on the microstructure and defects, such as, the grain size and the presence of grain boundaries, anti-phase boundaries, strain disorder due to lattice mismatch and/or the Fe+2/Fe+3 ratio.