In this work, an excellent design of photonic crystal fiber (PCF) with five layers of a hexagonal lattice of air holes (AHs) of cladding region as well as two elliptical air holes in the core area (CA) has been presented for terahertz (THz) wave pulse propagation. The finite element method with perfectly matched layers has been used to design our proposed fiber L-PCF to achieve the low effective material loss (L-EML) in the terahertz regime for communication applications. After the simulation procedure, our proposed low-loss PCF (L-PCF) fiber shows a low effective material loss of 0.007 cm⁻¹, with power fraction (PF) in the core area of 80% and a large effective area of 3.46 × 10^–8 m² at 1 terahertz (THz). Moreover, other optical properties such as V-parameter, scattering loss, and confinement loss are also reported here. For different types of optical and telecommunication applications, our suggested L-PCF fiber will be highly suitable at the terahertz (THz) waveguiding.