We have studied the generation of terahertz (THz) waves by optical parametric processes based on laser light scattering from the polariton mode of nonlinear crystals. Using parametric oscillation of LiNbO3 or MgO-doped LiNbO3 crystal pumped by a nano-second Q-switched Nd:YAG laser, we have realized a widely tunable coherent THz-wave sources with a simple configuration. We report the detailed characteristics of the oscillation and the radiation including tunability, spatial and temporal coherency, uni directivity, and efficiency. A Fourier transform limited THz-wave spectrum narrowing was achieved by introducing the injection seeding method. Further, we have developed a spectroscopic THz imaging system using a TPO, which allows detection and identification of drugs concealed in envelopes, by introducing the component spatial pattern analysis. Several images of the envelope are recorded at different THz frequencies and then processed. The final result is an image that reveals what substances are present in the envelope, in what quantity, and how they are distributed across the envelope area. The example presented here shows the identification of three drugs, two of which illegal, while one is an over-the-counter drug.