Currently, there is an increasing demand for the diagnostic techniques that provide functional and morphological information with early cancer detection capability. Novel modern medical imaging systems driven by the recent advancements in technology such as terahertz (THz) and infrared radiation-based imaging technologies which are complementary to conventional modalities are being developed, investigated, and validated. The THz cancer imaging techniques offer novel opportunities for label free, non-ionizing, non-invasive and early cancer detection. The observed image contrast in THz cancer imaging studies has been mostly attributed to higher refractive index, absorption coefficient and dielectric properties in cancer tissue than that in the normal tissue due the local increase of the water molecule content in tissue and increased blood supply to the cancer affected tissue. Additional image contrast parameters and cancer biomarkers that have been reported to contribute to THz image contrast include cell structural changes, molecular density, interactions between agents (e.g., contrast agents and embedding agents) and biological tissue as well as tissue substances like proteins, fiber and fat etc. In this paper, we have presented a systematic and comprehensive review of the advancements in the technological development of THz technology for cancer imaging applications. Initially, the fundamentals principles and techniques for THz radiation generation and detection, imaging and spectroscopy are introduced. Further, the application of THz imaging for detection of various cancers tissues are presented, with more focus on the in vivo imaging of skin cancer. The data processing techniques for THz data are briefly discussed. Also, we identify the advantages and existing challenges in THz based cancer detection and report the performance improvement techniques. The recent advancements towards THz systems which are optimized and miniaturized are also reported. Finally, the integration of THz systems with artificial intelligent (AI), internet of things (IoT), cloud computing, big data analytics, robotics etc. for more sophisticated systems is proposed. This will facilitate the large-scale clinical applications of THz for smart and connected next generation healthcare systems and provide a roadmap for future research.