Ultrashort terahertz pulses derived from femtosecond table-top sources have become a valuable tool for time-resolved spectroscopy during the last two decades. Until recently, the pulse energies and field strengths of these pulses have been generally too low to allow for the use as pump pulses or the study of nonlinear effects in the terahertz range. In this review article we will describe methods of generation of intense single cycle terahertz pulses with emphasis on optical rectification using the tilted-pulse-front pumping technique. We will also discuss some applications of these intense pulses in the emerging field of nonlinear terahertz spectroscopy.