We present different concepts for compact and cost effective THz technology based on semiconductor diode lasers. First, we discuss THz sources starting with modelocked diode lasers for time domain THz sampling, and two‐colour diode lasers for continuous wave THz generation. Then we show how THz radiation can be generated directly out of two‐colour diode lasers and discuss possible schemes for an optimisation of this effect towards application relevant power levels. Finally, we demonstrate that diode lasers can also serve as detectors for THz radiation. We couple the emission of a THz gas laser into the active region of a diode laser and demonstrate that this leads to a variation of the voltage over the p‐n‐junction which is almost proportional to the THz power coupled into the device. (© 2009 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)