The Collaborative International Dictionary of English v.0.48:

Terry \Ter"ry\, n.
   A kind of heavy colored fabric, either all silk, or silk and
   worsted, or silk and cotton, often called terry velvet, used
   for upholstery and trimmings.
   [1913 Webster]

WordNet (r) 3.0 (2006):

Terry
    n 1: English actress (1847-1928) [syn: Terry, Dame Ellen
         Terry, Dame Alice Ellen Terry]
    2: a pile fabric (usually cotton) with uncut loops on both
       sides; used to make bath towels and bath robes [syn: terry,
       terry cloth, terrycloth]