A porous-core octagonal photonic crystal fiber (PC-OPCF) with ultralow effective material loss (EML), high core power fraction, and ultra flattened dispersion is proposed for terahertz (THz) wave propagation. At an operating frequency of 1 THz and core diameter of 345 μm, simulation results display an extremely low EML of 0.047 cm−1, 49.1% power transmission through core air holes, decreased confinement loss with the increase of frequency, and dispersion variation of 0.15 ps/THz/cm. In addition, the proposed PCF can successfully operate in single-mode condition. All the simulations are performed with finite-element modeling package, COMSOL v4.2. The design can be fabricated using a stacking and drilling method. Thus, the proposed fiber has the potential of being an effective transmission medium of broadband THz waves.