He commanded his brigade during Jubal A. Early's 1864 campaign in the Shenandoah Valley. Terry's hard-hitting final assault at the Battle of Monocacy finally broke the Union line and forced the withdrawal of Lew Wallace's army. Later that year, Terry was one of seven Confederate generals who were killed or wounded at the Third Battle of Winchester. Recovering, he led the brigade back to Petersburg, where he was again wounded on March 25, 1865, when Gordon's Corps attacked Fort Stedman. Terry was taken to his home in Wytheville to recover from his injuries.