Terzić returned to Borussia Dortmund in 2018 as an assistant coach of the first team after the appointment of Lucien Favre as manager.[15] He took charge of the team along with his colleague Manfred Stefes for the 2018–19 encounter against TSG 1899 Hoffenheim, as head coach Lucien Favre missed the match due to illness.[2][16] After Favre was sacked following a 1–5 loss against VfB Stuttgart in December 2020, Terzić was appointed caretaker manager until the end of the 2020–21 season.[4]