The adventure begins with young Terry Lee, "a wide-awake American boy," arriving in then-contemporary China with his friend, two-fisted journalist Pat Ryan. Seeking a lost gold mine, they meet George Webster "Connie" Confucius, interpreter and local guide. Initially, crudely drawn backgrounds and stereotypical characters surrounded Terry as he matched wits with pirates and various other villains. He developed an ever-larger circle of friends and enemies, including Big Stoop, Captain Judas, Cheery Blaze, Chopstick Joe, Cue Ball, and Dude Hennick. Most notable of all was the famed
femme fatale, the
Dragon Lady, who started as an enemy and later, during World War II, became an ally. Caniff included a number of non-American female antagonists, all of whom
referred to themselves in the third person. These included the Dragon Lady and crooks and spies like Sanjak and Rouge. In a rather bold move for a 1940s comic strip, Sanjak was hinted at being a lesbian cross-dresser with designs on Terry's girlfriend April Kane. Caniff purportedly named the character after an island next to the isle of
Lesbos. Over time, owing to a successful collaboration with cartoonist
Noel Sickles, Caniff dramatically improved to produce some of the most memorable strips in the history of the medium. , Caniff's assistant on
Terry and the Pirates, went on to create his own adventure strip,
Bruce Gentry. • April Kane: A Southern belle who wins Terry's heart. She works as Pat's secretary when he is an agent of the Dragon Lady, but she leaves when she becomes the target of a blackmailer. She returns in 1944, having spent the last few years in a Japanese prison camp. The experience has hardened her, and she tries to make Terry jealous by cavorting with Flip Corkin. She tries to set up an airfield near an island army base but she learns too late that the Army is abandoning the island, and she is stranded there alone. • Flip Corkin: Terry's flight instructor in the Air Force, who delivers the Sunday page lecture on military duty. Based on
Phil Cochran. • Taffy Tucker: Flip's girlfriend, an Army nurse. She briefly develops amnesia and is rescued by Pat, and they connect romantically. She returns to Flip after regaining her memory. • Hotshot Charlie: Charles C. Charles, a comically flippant Boston pilot who becomes Terry's best friend in the Air Force. After the war ends, he is stifled by civilian life and jumps at the chance to help Terry out in post-war Asia doing government work.
Recurring • Captain Blaze: A boisterous English pirate who helps Terry and Pat out against the Dragon Lady, later returning to help Pat out in China. • Captain Judas: A debonair criminal who clashes with the heroes several times. A former partner of Burma's, he sustains severe facial burns when she throws a lamp in his face. He shoved Raven out of a truck, leading to her fatal injuries before being shot by Dude Hennick and presumably killed. • Papa Pyzon: A corpulent criminal Terry and Pat meet in China who later returns as an Axis agent during the war. • Nasty: Nastalathia Smythe-Heatherstone, a young heiress Terry and Burma rescue from a crashed plane. Her bratty and selfish attitude drives them crazy and nearly gets them killed. Years later, the now-grown Nasty returns to involve Terry and Charlie in her efforts to ship food to Chinese refugees, which is really an attempt to win Terry. She tries to woo Charlie to get at Terry. • Tony Sandhurst: Normandie's rich but immoral husband, who puts himself above everyone. He tries to have Pat put in jail for ruining his business and is later revealed to be working for the Axis during the war and becomes a criminal kingpin in the post-war period. • Hu Shee: The Dragon Lady's aide and confidante who sometimes impersonates her for some missions. She seems interested in a romance with Terry. She is apparently drowned under a sinking ship with new love, pirate Johnny Jingo. • Cheery Blaze: Captain Blaze's hefty daughter who hates her father with a passion. She returns during the war working with the Axis but is arrested for her crimes. • Singh-Singh: A dim-witted would-be warlord who clashes with Pat and the Dragon Lady. He later marries Cheery Blaze but is arrested with her. • Chopstick Joe: An underworld figure who is a friendly rival of the Dragon Lady. • Dude Hennick: An old friend of Pat's, an ace pilot who helps the heroes out. He goes to work for Raven Sherman, the two falling in love but she ends up dying in his arms. He vanishes from the strip and a Christmas, 1945 strip has Caniff saying he based the character on a pilot friend, Frank Cliff, who was killed in Shanghai and "Dude died with him." • Sanjak: A Frenchwoman who dresses like a man, using a monocle to hypnotize people. She works for the Axis, impersonating a pilot to infiltrate Terry's Air Force base and is apparently killed in a crashing plane. • Jos Goode: A Southern soldier who serves with Pat, Connie, and Big Stoop in the Pacific. • Snake Tumblin: A fellow pilot of Terry's, he is apparently killed in a crashing plane. However, Caniff's final strips show him seemingly alive but blinded. • Jane Allen: An Army nurse who falls in love with Snake. She and Terry seem to be getting closer but when she sees a picture of Snake alive, she leaves Terry on the tarmac in Caniff's final strip. ==During World War II==