Terahertz time-domain spectroscopy (THz-TDS) has emerged as a powerful and versatile tool in various scientific fields. These include—among others—imaging, material characterization, and layer thickness measurements. While THz-TDS has achieved significant success in research environments, the high cost and bulky nature of most systems have hindered widespread commercialization of this technology. Two primary factors contributing to the size and cost of these systems are the laser and the optical delay unit (ODU). Consequently, our group has focused on developing THz-TDS systems based on compact monolithic mode-locked laser diodes (MLLDs). The ultra-high repetition rate (UHRR) of the MLLD has the added benefit that it allows us to utilize shorter ODUs, thereby reducing the overall cost and size of our systems. However, achieving the necessary precision in the ODU to acquire accurate terahertz time-domain signals remains a crucial aspect. To address this issue, we have developed and enhanced an interferometric extension for UHRR-THz-TDS systems. This extension is inexpensive, compact, and easy to incorporate. In this article, we present the system setup, the extension itself, and the algorithmic procedure for reconstructing the delay axis based on the interferometric reference signal. We evaluate a dataset comprising 10,000 signal traces and report a standard deviation of the measured terahertz phase at 1.6 THz as low as 3 mrad. Additionally, we demonstrate a remaining peak-to-peak jitter of only 20 fs and a record-high peak signal-to-noise ratio of 133 dB at 100 GHz after averaging. The method presented in this paper allows for simplified THz-TDS system builds, reducing bulk and cost. As a result, it further facilitates the transition of terahertz technologies from laboratory to field applications.