The invention discloses a terahertz transverse Schottky diode. The terahertz transverse Schottky diode comprises a semi-insulating layer, an active area N+ layer, an active area N- layer, a passivation layer, an ohmic contact area, a Schottky contact area, a cathode and an anode. A manufacturing method of the terahertz transverse Schottky diode mainly includes the steps that after active area steps are etched, Si is sequentially injected in an ion mode, the active area N+ layer and the active area N- layer are formed, the passivation layer is deposited after annealing, the ohmic contact area is photoetched under the protection of the passivation layer, then the Schottky contact area is photoetched through an electro beam photoetching technology, and after contact metal is deposited, the cathode and the anode are photoetched eventually. The transverse diode structure is adopted, so that the manufacturing process is simple, the size of each of transistors is accurately controlled, parasitic capacitance between the cathode and the anode is effectively lowered, working cut-off frequency and reliability of the diode are improved, all parasitic parameters are mutually isolated, relevance among the parasitic parameters is reduced on the basis of guaranteeing reliability, the device is more flexible in design, and the terahertz transverse Schottky diode and the manufacturing method of the terahertz transverse Schottky diode can be used for achieving frequency mixing or frequency doubling of terahertz frequency band signals.