The Italian Terraces are located below the Palace Terrace, were the high point of the architectural and horticultural design of the Park when it was originally built, and formed an impressive setting for the Palace. They provided gardens for promenading, relaxation and entertainment which survived until the fire of 1936. The statuary and much of the stonework, including some stairs, were sold in the 1950's. Spoil was spread and this became a grassed space for events.

The impressive retaining walls and balustrades are the principle remains of the built structures of Paxton’s landscape.  At 480m and 580m long, they provide the greatest evidence of the sensational scale of both the Palace and the Park.

The area is currently used as the rallying point for the London to Brighton Mini Run, parking for major events such as the Royal Philharmonic Concerts or simply to enjoy by those walking and cycling through the Park.

As part of the London Development Agency's Masterplan proposals for the Italian Terraces, the area will be restored and revived to their original splendour with two new sunken gardens to enhance access to the terraces and lower landscape whilst being flanked by two new greenhouses. It is also anticipated that the open spaces would be used as a site for temporary, semi-permanent garden installations and exhibitions of horticulture, in the tradition of Paxton's horticultural fêtes.