We design a compact terahertz (THz) polarization beam splitter. Both plane wave expansion method and finite-difference time-domain method are used to calculate and analyze the characteristics of the proposed device. The designed polarization beam splitter can split TE-polarized and TM-polarized THz waves into different propagation directions. The simulation results show that the extinction ratios are larger than 18.36 dB for TE polarization and 13.35 dB for TM polarization in the frequency range from 1.86 THz to 1.91 THz, respectively. The designed polarization beam splitter has the advantages of small size and compact structure with a total size of 4.825 mm×0.400 mm.