Recreational facilities in Terrace include an archery range, bowling alley, curling rink, fitness clubs, ice arenas, parks and playgrounds, rifle ranges, ski hills, stables, an aquatic centre, a golf course, tennis courts, baseball diamonds, soccer fields, and a boat launch.  In addition there are a large number of active community sports, hobby and service organizations.

Terrace residents also enjoy all the advantages of wilderness at their doorstep.  Outdoor recreational activities centre around nearby mountains, rivers and lakes and include fishing, hiking, biking, kayaking, canoeing, ice-fishing, rock climbing, water-skiing, skiing, showshoeing, snowmobiling and more.  The nearby Shames Mountain Ski Area boasts more snow than any lift-served ski area in North America.