Her feature films include Akame 48 Waterfalls (2003) and Vibrator (2003).

For her role in Caterpillar (2010), Terajima won the Silver Bear for Best Actress at the 60th Berlin Film Festival while her performance in Oh Lucy!

[2] Her father is the kabuki actor Onoe Kikugorō VII (Japanese: 五代目 尾上菊五郎, Hepburn: Nanadaime Onoe Kikugorō), her mother the actress Sumiko Fuji, and her brother is the kabuki actor Onoe Kikunosuke V.[3] She is also the granddaughter of Onoe Baikō VII, a renowned Kabuki actor considered one of the leading onnagata (i.e., a Kabuki actor who plays exclusively female roles) of the Showa era and father of Kikugorō VII (Terajima's father).

[4] In 2007, she married Laurent Ghnassia, a French art director based in Japan.

[5] In an interview with The Japan Times, Terajima stated that she is raising her son to be a kabuki actor.