The propagation characteristics of terahertz (THz) waves incident vertically into inhomogeneous and collisional dusty plasma with a ceramic substrate are studied using the scattering matrix method (SMM). The effects of the incident wave frequency and plasma parameters, such as the maximal electron density, dust particle density, dust particle radius and collision frequency, on the reflectance and transmittance of THz waves in the dusty plasma are discussed. In addition, the differences of the propagation properties in the dusty plasma, with and without ceramic substrate, are analyzed. Meanwhile, the differences of the propagation properties in dusty plasma and common plasma, respectively, with ceramic substrate are also compared. Simulation results show that the substrate and dust particles have significant influence on the propagation characteristics of THz wave in plasma sheath. Finally, the transmission increases with the increase of electron density, dust density, dust particle radius and collision frequency.