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Terrace Bay is a township in Thunder Bay District in northern Ontario, Canada, located on the north shore of Lake Superior east of Thunder Bay along Highway 17. The name originates from a series of lake terraces formed as the water level in Lake Superior lowered following the latest ice age.

Terrace Bay originated as a company town in the 1940s when a pulp and paper mill was established there by the Longlac Pulp & Paper Company, later renamed Kimberly-Clark Forest Products. At the same time, the Aguasabon Generating Station was created by the Ontario Hydro water division, to redirect the northward flowing Long Lake south through the Aguasabon River system to Lake Superior.

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113 Cumberland Street, Cornwall, ON K6J 4H4, Canada