Terrace/ˈterəs/ Definition 1 of 4Pro Tip 1/3Outdoor Relaxation Terrace implies a leisurely, outdoor seating area, great for recreation. Let's have our coffee on the terrace to enjoy the fresh air. Pro Tip 2/3Attached Space A terrace is directly connected to a building; it's an extension outside. Our hotel room has a lovely terrace with a garden view. Pro Tip 3/3Al Fresco Dining Terraces are often associated with outdoor dining or cafes. The restaurant's terrace fills up quickly on sunny days.