Terracing of hillslopes is usually regarded as an effective measure to control soil erosion. Although it is often stressed that proper terrace construction and regular terrace maintenance are of great significance to prevent erosion on terraced hillslopes, examples of terrace-induced gully erosion are scarce. Field observations on terraced and partly abandoned hillslopes in the Black Soil Region of Northeast China, a region heavily affected by gully erosion since the middle of the 20th century, indicated that gully formation might be caused by terraces. In order to understand the impact of terracing on gully erosion, we selected several gullies to investigate the cause and timing of their triggering. We used a combination of field mapping, high-resolution digital terrain models, multi-temporal aerial photograph interpretation and interviews with local farmers. Our results showed that several gullies developed after terracing. Improper terrace design caused runoff concentration along terraces and ridges with mean inclination of 3.8%, which resulted in gully incision due to overtopping of terraces at low spots or due to the uncontrolled release of concentrated flow to adjoining unterraced hillslopes. The same processes are responsible for the persistent gully activity after abandonment and vegetation recovery. Furthermore, we showed how terraces affected gully morphology. Finally, we suggested appropriate countermeasures to stop further soil loss and land degradation on abandoned terraced hillslopes in NE China. Our findings are important as they demonstrate how poorly designed terraces may not only be ineffective but may even aggravate gully erosion. (C) 2020 Elsevier B.V. All rights reserved.