Frequency conversion by means of Kerr nonlinearity is one of the most common and exploited nonlinear optical processes in the UV, visible, IR, and mid-IR spectral regions. Here we show that wave mixing of an optical field and a terahertz wave can be achieved in diamond, resulting in the frequency conversion of the terahertz radiation either by sum- or difference-frequency generation. In the latter case, we show that this process is phase matched and most efficient in a counterpropagating geometry.