After becoming bishop, Terlecki demanded the rights and privileges of the clergy, collected documents from the historical past of his predecessor, and compiled the diocesan archives.
In 1585, the bishop of Lutsko Ostrozhsky, John-Borzobahatyy Krasenskyy, died, and in May of that year, King Stefan Batory appointed Terlecki his successor.
In August 1589, Ecumenical Patriarch Jeremias II appointed Terlecki as Exarch – the first for a Ukrainian bishop.
In June 1595, members of the Council of Brest agreed on texts of the appeals to the Polish King Sigismund III Vasa and the Pope Clement VIII and decided to send a delegation consisting of Terlecki and Ipatii Potii to Rome.
In 1596, Terlecki participated in the Council of Brest, which solemnly proclaimed the ecclesiastical union of the Metropolis of Kyiv and the Roman Catholic Church.