Terracing is a process of deposition or erosion which produces step-like formations on a slope. Alluvial terracing is usually caused by periodic reductions in the area of the floodplain of a river.

Terracing is also stepped terrain around the inside slopes of large craters, which has resulted from slumping and sliding of blocks of land. Although usually associated with impact craters with diameters of over 20 kilometers, terracing can occur within volcanic craters, especially collapse craters and calderas.