We report experimental and finite-difference time-domain simulation studies on terahertz (THz) characteristics of band gaps by using metal grooves which are located inside the flare parallel-plate waveguide. The vertically localized standing-wave cavity mode (SWCM) between the upper waveguide surface and groove bottom, and the horizontally localized SWCM between two groove side walls (groove cavity) are observed. The E field intensity of the horizontally localized SWCM in grooves is very strongly enchanced which is three order higher than that of the input THz. The 4 band gaps except the Bragg band gap are caused by the π radian delay (out of phase) between the reflected THz field by grooves and the propagated THz field through the air gap. The measurement and simulation results agree well.