In this paper, an interesting type of a two-section folded wave-guide (TSFW) slow wave structure (SWS) for the development of sub-Terahertz (sub-THz) extended interaction oscillator (EIO) is proposed. In this sub-THz device, the prebunching electron beam is produced by the TSFW SWS, which results in the enhancement of the output power. To verify this concept, the TSFW for sub-THz EIO is developed, which includes the design, simulation, and some fabrications. A small size of electron optics system (EOS), the TSFW SWS for beam-wave interactions, and the output structure are studied with simulations. Through the codes Egun and Superfish, the EOS is designed and optimized. With a help of CST studio and 3D particle-in-cell (PIC) simulation CHIPIC, the characteristics of beam-wave interaction generated by the TSFW are studied. The results of PIC simulation show that the output power is remarkably enhanced by a factor of 3, which exceeds 200 W at the frequency of 108 GHz. Based on the optimum parameters, the TSFW is manufactured with a high speed numerical mill, and the test transmission characteristic |S21| is 13 dB. At last, the output structure with a pill-box window is optimized, fabricated, integrated, and tested, and the result shows that the voltage standing-wave ratio of the window is about 2.2 at an operating frequency of 108 GHz. This design and simulation can provide an effective method to develop high power THz sources.