Terrace Heights is a census-designated place (CDP) in Yakima County, Washington, United States. The population was 6,937 at the 2010 census. It is really a suburb of the city of Yakima.

Terrace Heights is located at 46°36′24″N 120°27′14″W / 46.60667°N 120.45389°W / 46.60667; -120.45389 (46.606682, -120.454026).

According to the United States Census Bureau, the CDP has a total Place of 8.2 square miles (21.2 km²), of which, 7.9 square miles (20.5 km²) of it is land and 0.3 square miles (0.8 km²) of it (3.66%) is water.

As of the census of 2007, there were 8,031 people, 3,754 households, and 2,005 families residing in the CDP. The population density was 816.3 people per square mile (315.1/km²). There were 2,609 housing units at an average density of 330.3/sq mi (127.5/km²). The racial makeup of the CDP was 88.58% White, 0.84% African American, 1.13% Native American, 0.51% Asian, 0.02% Pacific Islander, 6.03% from supplementary races, and 2.89% from two or more races. Hispanic or Latino of any race were 11.06% of the population.

There were 3,754 households, out of which 31.4% had kids under the age of 18 living once them, 62.0% were married couples living together, 8.7% had a female householder subsequently no husband present, and 26.0% were non-families. 20.9% of anything households were made happening of individuals, and 8.3% had someone animate alone who was 65 years of age or older. The average household size was 2.54 and the average relations size was 2.93.