Abstract Terahertz (THz) imaging is a promising technology that can accurately detect breast tumors during breast-conserving surgery. Researchers have studied THz imaging and spectroscopy techniques to improve breast tumor detection for the past 20 years. This paper presents the recent development of the holographic THz imaging (HTI) method for identifying breast tumors. To evaluate the effectiveness of this new approach, we have developed a numerical system that includes realistic breast models and an imaging processing model. Through various experiments, we have successfully used the proposed holographic THz imaging method to identify breast tumors. Our results have shown that this method can reconstruct high-quality breast images and accurately detect small tumor inclusions, providing the correct size and location information. Based on these promising results, further investigation is warranted to explore the potential of this approach for breast tumor detection in a faster and more cost-effective manner.