Terang is a town in the Western District of Victoria, Australia. The town is in the Shire of Corangamite and on the Princes Highway 212 kilometres south west of the state's capital, Melbourne. The population of Terang according to the 2011 Census has risen to 2,348, of which 1,155 are male and 1,193 are female, with the median age being 44. Terang is in a fertile dairy-farming district. Terang is a well-laid-out town with grand avenues of deciduous trees, and is known throughout the state for its horseracing carnivals.