Widely tunable coherent terahertz (THz) wave generation has been demonstrated based on the parametric oscillation using MgO doped LiNbO3crystal pumped by a Q‐switched Nd:YAG laser. This method exhibits multiple advantages like wide tunability, coherency and compactness of its system. We have developed a novel basic technology for terahertz (THz) imaging, which allows detection and identification of chemicals by introducing the component spatial pattern analysis. The spatial distributions of the chemicals were obtained from terahertz multispectral transillumination images, using absorption spectra previously measured with a widely tunable THz‐wave parametric oscillator. Further we have applied this technique to the detection and identification of illicit drugs concealed in envelopes. The samples we used were methamphetamine and MDMA, two of the most widely consumed illegal drugs in Japan, and aspirin as a reference. © 2004 American Institute of Physics