Abstract: The effect of THz radiation absorption on the efficiency of generation of coherent THz radiation in a nonlinear optical crystal placed into a metal rectangular waveguide is studied. The efficiency of the nonlinear conversion of optical laser radiation to the THz band is also a function of the phase-matching (PM) condition inside the nonlinear crystal. The method of partial filling of a metal waveguide with a nonlinear optical crystal is used to ensure phase matching. Phase matching was obtained by the proper choice of the thickness of the nonlinear crystal, namely the degree of partial filling of the waveguide. We have studied the THz radiation attenuation caused by the losses in both the metal walls of the waveguide and in the crystal, taking into account the dimension of the cross section of the waveguide, the degree of partial filling and its dielectric constant.