This study provides an overview of measured S-parameters and its processing to extract the dielectric properties of materials such as Teflon, PMMA, and PVC which are preferred for materials characterization process. In addition, a correction model is presented for transmission parameter (S (21)) to obtain the dielectric constant with high accuracy. A non-destructive and non-contact free space measurement method has been used to measure S-parameters of thin samples in the low THz frequency range. S-parameters are measured in free space by vector network analyzer supported with two frequency extenders. Additionally, the parabolic mirrors are used to collimate the generated beam in wide frequency range. Furthermore, a standard filter process is performed to remove the undesired ripples in signal using singular spectrum analyzer before the implementation of extraction process. Newton-Raphson extraction technique is used to extract the material complex permittivity as a function of the frequency in Y-band (325-500 GHz).