Terahertz (THz) testing, by the frequency modulated continuous wave (FMCW) system, is often hampered by the limited range resolution. Thus, in this paper, a software method is proposed to reconstruct the range profile, yielding significant improvements in range resolution and in signal parameter extraction. Specifically, the multiple signal characterization algorithm is first introduced to indicate a higher-resolution range profile qualitatively and to acquire the echoes' initial values. Then, multiple Gaussian functions are applied to fit those echoes in the whole original range profile and to accurately extract the parameters, including the amplitude, range, and width, of each echo. Finally, with these parameters, the range profile can be more precisely and flexibly reconstructed, facilitating the following detection procedure to a great extent. Both the simulated and the real THz data, acquired by a 150-220 GHz FMCW imager, have been used to demonstrate the superiority and effectiveness of our method, qualitatively and quantitatively.