Abstract: We present a detailed theoretical study of terahertz (THz) optical absorption in bilayer graphene. Considering an air/graphene/dielectric-wafer system, we find that there is an absorption window in the range 3 similar to 30 THz. Such an absorption window is induced by different transition energies required for inter- and intra-band optical absorption in the presence of the Pauli blockade effect. As a result, the position and width of this THz absorption window depend sensitively on temperature and carrier density of the system. These results are pertinent to the applications of recently developed graphene systems as novel optoelectronic devices such as THz photo-detectors.