Terry was born in Little Rock, Arkansas, on November 3, 1882, to a socially and politically prominent family.
She was the daughter of John Gould Fletcher (I), an Arkansas native and Confederate officer who became one of the South's leading cotton brokers and a prominent bank president.
He was elected the first sheriff of Pulaski County and later served as mayor of Little Rock (1875 to 1881); he was unsuccessful in three bids for governor and one for Congress.
Terry's mother was the former Adolphine Krause, daughter of a Little Rock merchant and a German immigrant.
Terry had two younger siblings: Pulitzer Prize-winning poet John Gould Fletcher and suffragist Mary Fletcher Drennan.

Before marrying John Gould Fletcher, Terry's mother was compelled to leave school and abandon her pursuit of a career in music to care for her ailing mother and siblings.
Because of this experience, Adolphine Krause became highly protective of her own children and encouraged educational achievements.
Terry and her siblings were typically overdressed in layers of heavy cotton fabric, even in the heat of summer, and were discouraged from adventurous play for fear they would be injured.

In 1889, the Fletcher family purchased the former home of Albert Pike at 411 7th Street in Little Rock, Arkansas.
The Greek Revival style home most recently housed the Arkansas Female College, and the Fletchers made significant improvements to restore it to a family residence.
Terry would grow up, marry and live most of the rest of her life in that home, which served as the headquarters for her later activism and became known as the Pike–Fletcher–Terry House.

In her unpublished autobiography, Terry recalled an early "lesson in justice" that influenced her view of race relations.
A cousin accused a young black house servant of stealing a diamond ring and demanded his arrest, only to find it hidden in the ruffles of her dress.
At a time when such a charge would likely end in mob justice for the accused, the cousin went on with her day without a second thought.
Terry, however, realized how the casual accusation imperiled the boy, and she never forgot the incident.

Like many privileged women of her time, Terry entered college at the early age of 15 after graduating Peabody High School in 1898.
Following the wishes of her mother, became only the second Arkansan to attend the prestigious Vassar College in Poughkeepsie, New York.
Vassar's curriculum engaged Terry with community issues of her time, taught her to think independently and planted a seed for social activism in her life.
She also credits the influence of classmate Lucy Burns—who would go on to become one of the key figures to win passage of the 19th Amendment—for imparting a different view of race than she learned from her Southern upbringing.
Terry graduated in 1902 and returned to Arkansas "... ready to change the world and she kept trying until her dying day to do it," according to her friend Judge Edwin Dunaway.
Terry was born in Little Rock, Arkansas, on November 3, 1882, to a socially and politically prominent family. She was the daughter of John Gould Fletcher (I), an Arkansas native and Confederate officer who became one of the South's leading cotton brokers and a prominent bank president. He was elected the first sheriff of Pulaski County and later served as mayor of Little Rock (1875 to 1881); he was unsuccessful in three bids for governor and one for Congress. Terry's mother was the former Adolphine Krause, daughter of a Little Rock merchant and a German immigrant. Terry had two younger siblings: Pulitzer Prize-winning poet John Gould Fletcher and suffragist Mary Fletcher Drennan.
Before marrying John Gould Fletcher, Terry's mother was compelled to leave school and abandon her pursuit of a career in music to care for her ailing mother and siblings. Because of this experience, Adolphine Krause became highly protective of her own children and encouraged educational achievements. Terry and her siblings were typically overdressed in layers of heavy cotton fabric, even in the heat of summer, and were discouraged from adventurous play for fear they would be injured.
In 1889, the Fletcher family purchased the former home of Albert Pike at 411 7th Street in Little Rock, Arkansas. The Greek Revival style home most recently housed the Arkansas Female College, and the Fletchers made significant improvements to restore it to a family residence. Terry would grow up, marry and live most of the rest of her life in that home, which served as the headquarters for her later activism and became known as the Pike–Fletcher–Terry House.
In her unpublished autobiography, Terry recalled an early "lesson in justice" that influenced her view of race relations. A cousin accused a young black house servant of stealing a diamond ring and demanded his arrest, only to find it hidden in the ruffles of her dress. At a time when such a charge would likely end in mob justice for the accused, the cousin went on with her day without a second thought. Terry, however, realized how the casual accusation imperiled the boy, and she never forgot the incident.
Like many privileged women of her time, Terry entered college at the early age of 15 after graduating Peabody High School in 1898. Following the wishes of her mother, became only the second Arkansan to attend the prestigious Vassar College in Poughkeepsie, New York. Vassar's curriculum engaged Terry with community issues of her time, taught her to think independently and planted a seed for social activism in her life. She also credits the influence of classmate Lucy Burns—who would go on to become one of the key figures to win passage of the 19th Amendment—for imparting a different view of race than she learned from her Southern upbringing. Terry graduated in 1902 and returned to Arkansas "... ready to change the world and she kept trying until her dying day to do it," according to her friend Judge Edwin Dunaway.
Adolphine Fletcher Terry