terrace (Noun) — Usually paved outdoor area adjoining a residence.
terrace (Noun) — A level shelf of land interrupting a declivity (with steep slopes above and below).
terrace (Noun) — A row of houses built in a similar style and having common dividing walls (or the street on which they face).
terrace (Verb) — (architecture) provide (a house) with a terrace. ex. "We terraced the country house"
terrace (Verb) — Make into terraces as for cultivation. ex. "The Incas terraced their mountainous land"