Terry's greatest achievement of the war came when he was placed in command of the Fort Fisher Expeditionary Corps. Benjamin Butler had previously failed in an expedition against Fort Fisher at the end of 1864. Terry had gained the confidence of General Ulysses S. Grant and was now in command of the ground forces in a second expedition against the fort. Unlike Butler, Terry worked well with the Navy under the command of David D. Porter. On January 13, 1865, Terry sent a division of United States Colored Troops to hold off Confederate forces under Braxton Bragg to the north of Fort Fisher. He sent his other division under Adelbert Ames against the northern part of the fort. After hand-to-hand fighting, the Union troops took control of the fort. For his part in the Battle of Fort Fisher, Terry was promoted to major general of volunteers and brigadier general in the regular army. Reinforcements arrived in February and John M. Schofield arrived to take overall command of the campaign against Wilmington, North Carolina. After the fall of Wilmington, the Fort Fisher Expeditionary Corps was renamed the X Corps, with Terry remaining in command, and participated in the final stages of the Carolinas Campaign. He is generally considered one of the most capable generals with no previous military training to emerge from the war.