The degradation of high-frequency characteristics of a 1.0-THz double-drift region (DDR) impact avalanche transit time (IMPATT) diode based on wurtzite gallium nitride (Wz-GaN), due to the influence of parasitic series resistance, has been investigated. A two-dimensional (2-D) large-signal (L-S) simulation method based on a non-sinusoidal voltage excitation (NSVE) model has been used for this purpose. A comprehensive model of series resistance has been developed by considering the influence of skin effect, and the said model has been incorporated in the 2-D L-S simulation for studying the effect of RF power output and DC to RF conversion efficiency of the device. Results indicate 24.2–35.9% reduction in power output and efficiency due to the RF power dissipation in the positive series resistance. However, the device can still deliver 191.7–202.9 mW peak RF power to the load at 1.0 THz with 8.48–6.41% conversion efficiency. GaN IMPATT diodes are capable of generating higher RF power at around 1 THz than conventional diodes, but the effect of parasitic series resistance causes havoc reduction in power output and efficiency. The nature of the parasitic resistance is studied here in the level of device fabrication and optimization, which to our knowledge is not available at present.