The conoidean family Terebridae is an intriguing lineage of marine gastropods, which are of considerable interest due to their varied anatomy and complex venoms. Terebrids are abundant, easily recognizable and widely distributed in tropical and subtropical waters, but our findings have demonstrated that their systematics requires revision. Here we elaborate the classification of Terebridae based on a recently published molecular phylogeny of 154 species, plus characters of the shell and anterior alimentary system. The 407 living species of the family, including seven species described herein, are assigned to three subfamilies: Pellifroniinae new subfamily, Pervicaciinae and Terebrinae. The Pellifroniinae comprises five deep-water species in two genera, Pellifronia and Bathyterebra n. gen. Pellifroniinae possess a radula of duplex marginal teeth, well-developed proboscis and venom gland, and a very small rhynchodeal introvert. The Pervicaciinae includes c. 50 species in the predominantly Indo-Pacific genera Duplicaria and Partecosta. Pervicaciinae possess salivary glands, a radula of solid recurved marginal teeth and a weakly developed rhynchodeal introvert, but lack proboscis and venom gland. The remaining Terebridae species are classified into 15 genera in the subfamily Terebrinae (including four genera described herein); nine genera are defined on the basis of phylogenetic data and six solely on shell morphology. The Indo-Pacific genera Profunditerebra n. gen., Maculauger n. gen. and Myurellopsis n. gen. each include about a dozen species. The first is restricted to the deep waters of the Indo-West Pacific, while the latter two range widely in both geographic and bathymetric distribution. Neoterebra n. gen. encompasses about 65 species from a range of localities in the eastern Pacific, Caribbean, and Atlantic, and from varying depths. To characterize the highly diversified genera Terebra, Punctoterebra, Myurella and Duplicaria, each of which comprise several morphological clusters, we propose the use of DNA-based diagnoses. These diagnoses are combined with more informative descriptions to define most of the supraspecific taxa of Terebridae, to provide a comprehensive revision of the group.