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Abstract Photoconductive emitters for terahertz generation hold promise for highly efficient down-conversion of optical photons because it is not constrained by the Manley-Rowe relation. Existing terahertz photoconductive devices, however, faces limits in efficiency due to the semiconductor properties of commonly used GaAs materials. Here, we demonstrate that large bandgap semiconductor GaN, characterized by its high breakdown electric field, facilitates the highly efficient generation of terahertz waves in a coplanar stripline waveguide. Towards this goal, we investigated the excitonic contribution to the electro-optic response of GaN under static electric field both through experiments and first-principles calculations, revealing a robust excitonic Stark shift. Using this electro-optic effect, we developed a novel ultraviolet pump-probe spectroscopy for in-situ characterization of the terahertz electric field strength generated by the GaN photoconductive emitter. Our findings show that terahertz power scales quadratically with optical excitation power and applied electric field over a broad parameter range. We achieved an optical-to-terahertz conversion efficiency approaching 100% within the 0.03–1 THz bandwidth at the highest bias field (116 kV/cm) in our experiment. Further optimization of GaN-based terahertz generation devices could achieve even greater optical-to-terahertz conversion efficiencies.