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Terrace City is considered to be the oldest constantly occupied part of the world, as it was densely populated long before the Europeans settled within the region. The Kitsumkalum and the Kitselas are a couple of the seven Tsimshian tribes within the Terrace area, and its traditional economy consisted of trade, fishing, and hunting. The riverboats that once operated for 22 years in the region came to a halt and was substituted by the Grand Trunk Pacific Railway. Initially, it was named "Littleton" in honor of George Little, who donated 47 acres to the Grand Pacific Railway. Nevertheless, ever since there was already a Littleton in New Brunswick, the name was changed to "Terrace" in reference to its geography.

Now, there are many attractions in the area for both residents and visitors to enjoy. Operating form May to October at its George Little Memorial Park site is the Skeena Valley Farmer's Market. One more attraction is the former home of George Little, the town's founder, that is a two-story heritage home. It is easy to see in downtown Terrace, and a lot are encouraged to visit the place. The house likewise has a small gift shop that features local artists. The house likewise operates as the VIA Rail Station. The Greater Terrace Beautification Society is a group of local volunteers who are dedicated to making the Terrace area more charming. The Society meets every first Monday of each and every month. The Heritage Park Museum is operated by the Terrace and District Museum Society and considered a Municipal Heritage Site. The REM Lee Theatre is the biggest performing arts location in the city. The Terrace Art Gallery is a non-profit and public facility which is committed to the promotion of the community's visual arts for the last 25 years. The Terrace Public Library is free for all the residents of Rosswood, Terrace, New Remo, Thornhill, Old Remo, Copperside, Usk, Jackpine Flats, and all the Chimdemash communities in the east.

Once referred to as the "Cedar Pole Capital of the World," Terrace consists of over 50,000 poles manufactured to supply for telephone and electric power poles to many areas of North America. Its tallest poles are presently seen in the city of New York. In modern times, the economy, which only depended on logging and big companies have become much more diversified. It is presently more independent and separate from big employers and industries, and it boasts of a balanced economy that can face any type of economic cycle recession efficiently.