Single crystalline ZnTe is undoubtedly the leading nonlinear optical material for the promising application of terahertz (THz) generation and detection through optical rectification and electro-optic effect, respectively. In this work, we report the capability of the diluted magnetic semiconductor Zn1-xMnxTe as potential THz emitters and sensors. In Zn1-xMnxTe crystals, a significantly enhanced THz response as high as 10.4%-18.9% (emitter) and 16.9-28.0% (sensor) is observed over intrinsic ZnTe. Both the reduced carrier concentration and the better phase-match condition are proven to be responsible for the enhanced THz emission and detection. The resulting terahertz waves from Zn1-xMnxTe reveal an optimum x value of ~0.028. The magnetic, optical, and electrical properties of as-grown Zn1-xMnxTe crystals have also been evaluated.