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The optimization of high power terahertz monolithic integrated circuit (TMIC) is systemically studied based on the physical model of the Schottky barrier varactor (SBV) with interface defects and tunneling effect. An ultra-thin dielectric layer is added to describe the extra tunneling effect and the damping of thermionic emission current induced by the interface defects. Power consumption of the dielectric layer results in the decrease of capacitance modulation ration (Cmax/Cmin), and thus leads to poor nonlinear C–V characteristics. The proposed Schottky metal-brim (SMB) terminal structure could improve the capacitance modulation ration by reducing the influence of the interface charge and eliminating the fringing capacitance effect. Finally, a 215 GHz tripler TMIC is fabricated based on the SMB terminal structure. The output power is above 5 mW at 210–218 GHz and the maximum could exceed 10 mW at 216 GHz, which could be widely used in terahertz imaging, radiometers, and so on. This paper also provides theoretical support for the SMB structure to optimize the TMIC performance.