Terry McDonald had a three-year major junior hockey career in the WCJHL, one with the Vancouver Nationals and two with the Kamloops Chiefs. In his final season in 1974-75 McDonald put together a strong offensive resume, scoring 32 goals and 69 points in 66 games. The offensive output did not go unnoticed by NHL scouts, who progressively kept moving him up the depth charts for the 1975 Amateur Draft as the season progressed. On draft day McDonald was selected 74th overall by the Kansas City Scouts, who at the time were in dire need of all the help they could get.
McDonald attended Kansas City's training camp in the fall of 1975 but the coaching staff felt he was still a bit rough around the edges and thought he needed to play a more aggressive game, especially in the defensive zone so he was dispatched to the minors. He played part of the year with Springfield of the AHL and Port Huron of the IHL. However, he did get an eight-game look-see with the Scouts that year, picking up a single assist. It was only eight games of his NHL career.
McDonald played another three years in the minors with Rhode Island, Flint and Phoenix but chose to retire in 1979 realizing he was not destined to make it back to the NHL.