The terahertz region of the electromagnetic spectrum spans the frequency range of 0.1THz~10THz, which means it sandwiches between the mid-infrared (IR) and the millimeter/ microwave. With the development and commercialization of terahertz pulsed spectroscopy (TPS) and terahertz pulsed imaging (TPI) systems, terahertz technologies have been widely used in the sensing and imaging fields. It allows high quality cross-sectional images from within scattering media to be obtained nondestructively. Characterizing the interaction of terahertz radiation with multilayer medium structures is critical for the development of nondestructive testing technology. Currently, there was much experimental investigation of using TPI for the characterization of terahertz radiation in materials (e.g., pharmaceutical tablet coatings), but there were few theoretical researches on propagation of terahertz radiation in multilayer medium structures. Finite Difference Time Domain (FDTD) algorithm is a proven method for electromagnetic scattering theory, which analyzes continuous electromagnetic problems by employing finite difference and obtains electromagnetic field value at the sampling point to approach the actual continuous solutions. In the present work, we investigated the propagation of terahertz radiation in multilayer medium structures based on FDTD method. The model of multilayer medium structures under the THz frequency plane wave incidence was established, and the reflected radiation properties were recorded and analyzed. The terahertz radiation used was broad-band in the frequency up to 2 THz. A batch of single layer coated pharmaceutical tablets, whose coating thickness in the range of 40~100μm, was computed by FDTD method. We found that the simulation results on pharmaceutical tablet coatings were in good agreement with the experimental results obtained using a commercial system (TPI imaga 2000, TeraView, Cambridge, UK) , demonstrating its usefulness in simulating and analyzing terahertz responses from a multilayered sample.