With the exponential growth of the data traffic in wireless communication systems, terahertz (THz) frequency band is envisioned as a promising candidate to support ultra-broadband for future beyond fifth generation (5G), bridging the gap between millimeter wave (mmWave) and optical frequency ranges. The purpose of this paper is to provide a comprehensive literature review on the development towards THz communications and presents some key technologies faced in THz wireless communication systems. Firstly, despite the substantial hardware problems that have to be developed in terms of the THz solid state superheterodyne receiver, high speed THz modulators and THz antennas, the practical THz channel model and the efficient THz beamforming are also described to compensate for the severe path attenuation. Moreover, two different kinds of lab-level THz communication systems are introduced minutely, named a solid state THz communication system and a spatial direct modulation THz communication system, respectively. The solid state THz system converts intermediate frequency (IF) modulated signal to THz frequency while the direct modulation THz system allows the high power THz sources to input for approving the relatively long distance communications. Finally, we discuss several potential application scenarios as well as some vital technical challenges that will be encountered in the future THz communications.