Ethanol is widely used in chemical industrial processes as well as in the food and beverage industry. Therefore, methods of detecting alcohol must be accurate, precise, and reliable. In this content, a novel Zeonex-based photonic crystal fiber (PCF) has been modeled and analyzed for ethanol detection in terahertz frequency range. A finite-element-method-based simulation of the PCF sensor shows a high relative sensitivity of 68.87% with negligible confinement loss of 7.79×10-12 cm-1 at 1 THz frequency and x-polarization mode. Moreover, the core power fraction, birefringence, effective material loss, dispersion, and numerical aperture are also determined in the terahertz frequency range. Owing to the simple fiber structure, existing fabrication methods are feasible. With the outstanding waveguiding properties, the proposed sensor can potentially be used in ethanol detection, as well as polarization-preserving applications of terahertz waves.