Interest of the research in terahertz (THz) wave has been strongly motivated by its wide applications in the fields of physics, chemistry, biology, and engineering. Developing efficient and reliable THz source is of uttermost priority in these researches. Generally, due to the restrictions mainly caused by laser damage threshold, it is not possible to generate efficient and strong THz radiation. Plasma is a quasi-neutral medium composed of electrons and positive ions, exhibiting long-range collective behavior. It has garnered significant attention as a promising source for generating THz electromagnetic wave, primarily due to the ease with which it can tolerate very high power laser and provide strong THz beams in comparison with other media. This review focuses on the various key aspects of THz mechanisms in laser-plasma interactions and also examines the characteristics of the emitted THz waves under different laser and plasma parameters. Harnessing the advancements in ultrafast pulses, laser-induced plasma has proven to be a promising tool for generating THz waves.