Tucked away in the quiet, rain-forested valleys of Hazelbrook, Terrace Falls is easily one of the Blue Mountains’ most stunning yet criminally underrated gems. Here, a pristine series of gentle cascades tumbles over wide, natural rock shelves, winding deep into a lush, cool gully overflowing with vibrant ferns and towering blue gums. The walking track down to the main falls leads you through a remarkably tranquil microclimate, tracing active creek lines and passing a handful of smaller, hidden waterfalls.
As a massive bonus for pet owners, this trail is fully dog-friendly—a rare and welcome treat in the Blue Mountains, where nearby National Park boundaries usually mean leaving your pup at home. It’s a standout favourite for hikers, photographers, and energetic four-legged companions alike, offering a brilliant opportunity to explore a lush, temperate wilderness together. Whether you're hunting for pristine long-exposure water shots or just craving some off-the-beaten-path serenity, the Terrace Falls circuit provides the perfect, crowd-free escape into a quieter side of the mountains.
Adams Lookout
There are several spots from which you can access Terrace Falls, the most obvious being the fire trail at the end of Terrace Falls Road. Today, I opted for a slightly different approach, parking instead at the end of Lake Road (which is oddly named, considering it sits right on top of a dry ridge). This trailhead provides incredibly easy access to Adams Lookout—a modest, rocky clearing offering sweeping views across the dense canopy of the Terrace Falls valley.
Named in honour of F. Adams, who served as a dedicated trustee of the reserve from 1916 to 1938 and helped oversee its early development, this is the only formal lookout within the entire Terrace Falls Reserve. From this vantage point, a rough, moderately steep path plunges down through the sandstone ledges to meet the main Terrace Falls Fire Trail, which serves as the gateway to the waterfall loop below.
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| Lake Road |
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| Adams Lookout |
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| Terrace Falls Reserve |
Victor Falls
A short hike along the creek corridor (which requires a bit of rock-hopping to cross) brings you to a brief but awkward scramble down a sheer sandstone outcrop before you can drop down to the base of Terrace Falls. However, it proved a bit too challenging for the dog—even for a pup as energetic as ours. Fortunately, there is a slightly longer, much more manageable alternative route that loops around and leads directly to Victor Falls.
Originally known to locals as Woodford Falls, this beautiful tiered drop was later renamed in honour of Victor Frederick Cecil Levitt, the son of a resident who went off to fight in the First World War. The walking track down to the grotto was officially opened back in April 1916, making it one of the area's most historic walking attractions.
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| Making our way down to the waterfalls |
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| One happy hound |
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| Terrace Falls Fire Trail |
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| Beginning the loop |
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| Victor Falls |
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| Victor Falls |
The trail tracks the creek line closely through lush, cool bushland before finally arriving at Terrace Falls. While the foot-track can be a little difficult to spot in places—particularly around the slippery creek crossings—it remains generally straightforward to follow if you keep an eye out for the worn path.
As you first step out at the base of the falls, they may initially seem a bit smaller than expected. However, rock-hopping across the creek toward the massive, dark sandstone overhang completely shifts your perspective. From here, the true scale of the waterfall is revealed as it cascades beautifully down the wide, tiered rock shelves that give the falls their name. Deeply framed by towering cliffs, prehistoric ferns, and dense rainforest vegetation, it creates a spectacular, amphitheatre-like setting that is easily one of the most beautiful hidden pockets in the Blue Mountains.
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| Concrete disk near the waterfalls |
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| Terrace Creek |
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| Terrace Falls |
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| Terrace Falls |
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| Terrace Falls |
After spending several minutes photographing the falls, it was time to press on. From here, the track tracks the winding creek-line through the belly of the valley—a stretch that easily became the absolute highlight of the hike for me and a incredibly welcome surprise.
For anyone familiar with the upper Blue Mountains, this deep, shadowed gorge is highly reminiscent of sections of the famous Grand Canyon near Blackheath. You get that same immersive atmosphere, with dark, cascading waters hemmed in closely by towering, steep-sided sandstone walls. Along this stretch, Salote Pool in particular stands out as a spectacularly beautiful, tranquil spot to pause and listen to the water.
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| Following the trail along the creek |
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| Salote Pool |
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| Salote Pool |
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| Terrace Creek |
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| The spectacular gorge of Terrace Creek |
Continuing beyond Salote Pool, the track crosses the water once more to reach Little Terrace Falls—a smaller, delicate waterfall that spills cleanly into a highly picturesque pool tucked beneath the surrounding sandstone escarpment. The pristine combination of cascading water, sculptured rock formations, and wide, open swimming holes makes this one of the most appealing stops along the entire walk, particularly if you're tackling it during the sweltering warmer months. From this point, the track finally begins to leave the cool creek corridor behind, and the journey transitions from damp waterfall-hopping to the dry return climb.
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| Little Terrace Falls |
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| Little Terrace Falls |
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| Little Terrace Falls |
Lower Terrace Falls marks the absolute lowest point of the circuit. After taking in the view, the route tracks alongside Bedford Creek for a short distance until it reaches Bedford Pool. From here, the relaxing flat walking ends as the track begins a steady, uphill push back toward the Terrace Falls Fire Trail. Along the climb, there is an option to detour to the small Pyramid Falls; however, it's worth noting that this cascade only really exists after a period of sustained, heavy rain.
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| Terrace Creek |
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| Sandstone overhang |
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| Climbing back to the fire trail |
Once you top out on the fire trail, the final leg of the circuit involves retracing your steps back up to Adams Lookout. Picking your way up through the rugged sandstone ledges requires a bit of careful footwork—and might have you pausing once or twice to catch your breath—but before long, the canopy parts, and you emerge back onto the track close to Adams Lookout. From here, it is a blissfully flat, easy few hundred metres back to Lake Road, where a very happy (and likely quite muddy) dog awaits a well-deserved rest in the back of the car.
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| Terrace Falls Reserve |
Overall, the Terrace Falls circuit is an absolute standout. It is rare to find a trail in the Blue Mountains that packs in so much variety—from historic lookouts and lush, Grand Canyon-esque gorges to a succession of stunning waterfalls—all while being completely dog-friendly. Whether you are looking to escape the weekend crowds of the upper mountains, test out some long-exposure photography, or just treat your four-legged hiking buddy to a proper rainforest adventure, this quiet Hazelbrook loop delivers in spades.
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