The CD-ROM version added 70 MB of extended pre-rendered 3D cut scenes, a bonus hidden planet, higher image resolution (including more detailed textures) and support for 8-player network multiplay.

[8] Terminal Velocity received generally favorable reviews from game critics, who typically compared its gameplay to Descent.

GameSpot praised the visuals as immersive and providing a sense of high-speed action, calling the game a "proverbial quick fix" for players seeking a few minutes of fast-paced exhilaration.

[15] Computer and Video Games favorably compared Terminal Velocity to Star Wars, praising its "individuality" such as secret tunnels and hidden ships for adding to the polygonal shoot-'em-up's longevity and recommending that the player use a joystick.

It praised its utilization of Gouraud shading and light sourcing effects and the Sound Blaster AWE32 card, and noted that the music is synchronized to the player's current situation.

[16] PC Review praised the aspect of the levels' open environment across which the player is free to roam, calling the game "X-Wing in the mountains".

[9] Next Generation, while acknowledging that the game is "fun to play" and has a uniquely wide variety of open locales, gave it an overall negative review.

Arguing that the game is a first-person shooter and that "the genre, as currently exploited, is beginning to wear thin", it gave it two out of five stars.

[14] MacADDICT praised the multiplayer mode over the Ethernet and AppleTalk networks, but criticized the music and the inability to fire one's weapons and steer simultaneously.

[18] TouchArcade wrote that Terminal Velocity was not as memorable as other classics of its time such as Descent, but that the iOS port was a straightforward game well suited for mobile users wishing to experience 1990s' flight simulators.