Phillip Terry was born Frederick Henry Kormann on March 7, 1909, in San Francisco, California, to German-American parents Frederick Andrew Kormann and Ida Ruth Voll. He was their only child. Terry's interest in theatre began during his time at Stanford University, where he attended college. After leaving school, he spent a brief period in New York before traveling to London in 1933 to attend the Royal Academy of Dramatic Art. Following his time at the academy, Terry embarked on a four-year tour of British provinces, performing in stock theatre productions.
Upon returning to Hollywood, Terry took up a job with CBS Radio, where he appeared in numerous plays on the air, specializing in Shakespearean roles. He also performed in a screen test at MGM in 1937, which led to him being awarded a contract with the studio. Throughout his career, Terry appeared in over 80 movies, with many of his early roles being small and often uncredited. However, in the 1940s, he began to receive more substantial and frequent roles in quality films, such as The Lost Weekend (1945) and To Each His Own (1946).
Terry's career began to decline in the late 1940s, and he went on to take on occasional B-movie roles, including appearances in monster films. He also accepted television roles, appearing in episodes of shows like The Name of the Game and Police Woman, as well as making five guest appearances on Perry Mason. In 1973, Terry retired and moved to Santa Barbara, California, where he lived until his death.
Sadly, Terry suffered a series of strokes in 1978, which left him an invalid and significantly impacted his mobility and communication. He died at the age of 83 in his home in Santa Barbara, and his ashes were scattered in the Pacific Ocean.