It is located on the east side of Calton Hill, at the eastern extremity of the New Town, part of the UNESCO World Heritage Site inscribed in 1995.
Built on the west side of a setted street, the terrace faces sloping gardens descending down to Abbeyhill, across to Holyrood, and over to the heights of Arthur's Seat.
The Greek Revival architect William Henry Playfair designed Carlton Terrace in the 1820s, and a number of his original drawings, dating from 1821 to 1831, have survived in the Edinburgh University Library.
[7] Following the social changes after the First World War, up to half of the houses were turned into small private hotels, which in some cases lasted down to this century.
[7] Towards the end of the 20th century, the South Edinburgh School of Nursing was at 15, 16, and 17 (still indicated by a marble step with Carlton House in black letters[8]) and the Ingleby Gallery of modern art was at number 6.
In 1934, the owner of number 13 asked the George Heriot Trust to change the title deeds in order to allow him to divide the property, the first attempt anywhere in the three terraces (Regent, Royal and Carlton) to create apartments.
Each Carlton Terrace townhouse was designed by Playfair to have its own stable mews, 19 units for 19 houses, located in a circle within the bend of the road.