The development of Terahertz Backward Wave Oscillator(BWO) is reviewed. The 340 GHz BWO is investigated including the design and simulation of electron gun, focusing system and slow wave structure. The folded waveguide slow wave structure,the parallel electron beam gun and the permanent magnetic system are chosen in the system,and the simulation results show that the operation frequency can be tuned from 337 GHz to 347 GHz with 8 mA beam current and the variation of operation voltage from 14 kV to 16.2 kV,and the maximum output power is 10 mW. The Slow Wave Structure(SWS) is fabricated by UV Lithographie,Galanoformung,Abformung(LIGA),and the work on the vacuum condition is carried out to ensure the small surface roughness and reduce the transmission loss in the high frequency.