The Terrier was a development of the Bumblebee Project, the United States Navy's effort to develop a surface-to-air missile to provide a middle layer of defense against air attack. It was test launched from on January 28, 1953, and first deployed operationally on the s, and in the mid-1950s, with Canberra being the first to achieve operational status June 15, 1956. Its US Navy designation was SAM-N-7 until 1963 when it was re-designated RIM-2. For a brief time during the mid-1950s the United States Marine Corps had two Terrier battalions equipped with specially modified twin sea launchers for land use that fired the SAM-N-7. The Terrier was the first surface-to-air missile operational with the USMC. The launchers were reloaded by a special vehicle that carried two Terrier reloads. Initially, the Terrier used radar beam-riding guidance, forward aerodynamic controls, and a conventional warhead. It had a top speed of only Mach 1.8, a range of only, and was only useful against subsonic targets. Originally, the Terrier had a launch thrust of, and weight of. Its original dimensions were a diameter of, a length of, and a fin span of. Cost per missile in 1957 was an estimated $60,000. Before it was even in widespread service it was seeing major improvements. The RIM-2C, named the Terrier BT-3 was introduced in 1958. The forward control fins were replaced with fixed strakes, and the tail became the control surface. The BT-3 also had a new motor, and featured extended range, Mach 3 speed, and better maneuverability. The RIM-2D Terrier BT-3A entered service in 1962 with a W30 1kt nuclear warhead, but all other variants used a 218 lb controlled-fragmentation warhead. The RIM-2E introduced semi-active radar homing, for greater effectiveness against low-flying targets. The final version, the RIM-2F, used a new motor which doubled effective range to. The Terrier was the primary missile system of most US Navy cruisers and guided missile frigates built during the 1960s. It could be installed on much smaller ships than the much larger and longer-ranged RIM-8 Talos. A Terrier installation typically consisted of the Mk 10 twin-arm launcher with a 40-round rear-loading magazine, but some ships had extended magazines with 60 or 80 rounds, and the installation in Boston and Canberra used a bottom-loading magazine of 72 rounds. The French Navy's Masurca missile was developed with some technology provided by the USN from Terrier. The Terrier was replaced by the extended range RIM-67 Standard missile. The RIM-67 offered the range of the much larger RIM-8 Talos in a missile the size of the Terrier.
Terrier has also been used, typically as a first stage in a sounding rocket, for conducting high-altitude research. The Terrier can be equipped with various upper stages, like the Asp, the TE-416 Tomahawk, the Orion, or any of a variety of purpose-built second stages such as Oriole or Malemute. The booster also served as the basis for the MIM-3 Nike Ajax booster, which was slightly larger but otherwise similar, which has also seen widespread use in sounding rockets.
