This investigation demonstrates the feasibility of a magnetically tunable liquid crystal phase grating for the terahertz wave. The phase grating can be used as a beam splitter. The ratio of the zeroth and first-order diffracted THz-beams (0.3 THz) polarized in a direction perpendicular to that of the grooves of the grating can be tuned from 4:1 to 1:2. When the THz wave is polarized in any other direction, this device can be operated as a polarizing beam splitter.