Finite-difference time-domain (FDTD) computational phantoms aid the analysis of THz radiation interaction with human skin. The presented computational phantoms have accurate anatomical layering and electromagnetic properties. A novel “large sheet” simulation technique is used allowing for a realistic representation of lateral absorption and reflection of in-vivo measurements. Simulations carried out to date have indicated that hair follicles act as THz propagation channels and confirms the possible role of melanin, both in nevi and skin pigmentation, to act as a significant absorber of THz radiation. A novel freezing technique has promise in increasing the depth of skin penetration of THz radiation to aid diagnostic imaging.