Dortmund suffered a 2-1 defeat at the Metropolitano Stadium on Wednesday but Terzic gives his team every chance of producing a comeback against Atletico in Tuesday's return leg.
Dortmund last reached the Champions League semis in 2013 under Jurgen Klopp, losing to Bayern Munich in the final.
"Atletico forced us into mistakes last week," Terzic told reporters on Tuesday. "But we have everything in our own hands tomorrow to progress to the next round.
"We know that our opponents are very experienced. We want to do better from the start tomorrow.
"When you play against Atletico, individual mistakes are immediately penalised. We will show what must not happen to us tomorrow. But what's much more important is how we react. We are ready to make up for mistakes."
Striker Sebastien Haller, who scored in the first leg, is out after suffering an ankle injury during Dortmund's 2-1 Bundesliga win at Borussia Monchengladbach on Saturday.
"(Haller) unfortunately sustained an injury to his ankle again," Terzic said.
"He is now getting a full week of rest. There will be a final diagnosis on Saturday in order to define the period of absence slightly more clearly. We're assuming that he won't be available for two to three weeks."
But Terzic is hopeful that winger Jamie Bynoe-Gittens will be able to complete training with the team, having also been taken off during the Moenchengladbach match due to injury.
Another boost for Dortmund is the return of their Manchester United loanee, midfielder Jadon Sancho, who missed the Moenchengladbach trip after being ill.
