a raised level with a vertical or sloping front or sides faced with masonry, turf, or the like, especially one of a series of levels rising one above another.
the top of such a construction, used as a platform, garden, road, etc.
a nearly level strip of land with a more or less abrupt descent along the margin of the sea, a lake, or a river.
the flat roof of a house.
an open, often paved area connected to a house or an apartment house and serving as an outdoor living area; deck.
an open platform, as projecting from the outside wall of an apartment; a large balcony.
a row of houses on or near the top of a slope.
a residential street following the top of a slope.
verb (used with object), verb (used without object), terraced, terracing.
to form into or furnish with a terrace or terraces.

1505–15; earlier terrasse < Middle French < Old Provençal terrassa < Vulgar Latin *terrācea, feminine of *terrāceus. See terra, -aceous

terraceless, adjective
unterraced, adjective
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
terrace (ˈtɛrəs)
1.  a horizontal flat area of ground, often one of a series in a slope
2.  a.  a row of houses, usually identical and having common dividing walls, or the street onto which they face
 b.  (cap when part of a street name): Grosvenor Terrace
3.  a paved area alongside a building, serving partly as a garden
4.  a balcony or patio
5.  the flat roof of a house built in a Spanish or Oriental style
6.  a flat area bounded by a short steep slope formed by the down-cutting of a river or by erosion
7.  (usually plural)
 a.  unroofed tiers around a football pitch on which the spectators stand
 b.  the spectators themselves
8.  (tr) to make into or provide with a terrace or terraces
[C16: from Old French terrasse, from Old Provençal terrassa pile of earth, from terra earth, from Latin]

Collins English Dictionary - Complete & Unabridged 10th Edition
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Word Origin & History

1515, "gallery, portico, balcony," later "flat, raised place for walking" (1575), from M.Fr. terrace, from O.Fr. terrasse "platform (built on or supported by a mound of earth)," from V.L. *terracea, fem. of *terraceus "earthen, earthy," from L. terra "earth, land" (see
terrain). As a natural formation in geology, attested from 1674.
Online Etymology Dictionary, © 2010 Douglas Harper
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American Heritage
Medical Dictionary

terrace ter·race (těr'ĭs)
v. ter·raced, ter·rac·ing, ter·rac·es
To suture in several rows, as when closing a wound through a considerable thickness of tissue.

The American Heritage® Stedman's Medical Dictionary
Copyright © 2002, 2001, 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
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Example sentences
The blue garage door in a street of two-storey terraced houses gives no
  indication that people rather than cars are housed within.
Miners cut the hills down in rings, each smaller in diameter than the last,
  leaving a terraced depression in the ground.
The angle of sunlight casts deep shadows that help show the crater's terraced
  walls and smooth floor.
It was adorned with gleaming white limestone buildings, terraced gardens, and
  ritual baths.
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