On January 20, 2010, he was named in the Junior National Select Team to compete in the 2010 Nike Hoop Summit at the Rose Garden in Portland, Oregon on April 10. He was also selected to play in the 2010 McDonald’s All-American Game and the 2010 Jordan Brand Classic.

Jones committed to Washington on April 30, 2010, but did not sign a National Letter of Intent. He ended up changing his mind and on May 19, 2010, he signed a financial aid agreement with Kentucky instead of a letter of intent.

On January 11, 2011, Jones came off the bench for the first time in 2010–11 after not being able to participate in that day’s practice due to illness. That night, he broke the UK freshman single-game scoring record, putting up 35 points on 11-of-17 shooting against Auburn University. This came just one month after teammate Doron Lamb set the record with 32 points. The Wildcats advanced to the 2011 Final Four but ended up losing by one point to the University of Connecticut. Jones and Lamb decided to stay a second year at Kentucky instead of enter the NBA draft with freshmen Brandon Knight, Enes Kanter, junior DeAndre Liggins, and senior Josh Harrellson. As a freshman, he averaged 15.7 points, 8.8 rebounds, 1.6 assists, 1.1 steals and 1.9 blocks per game.

Entering his sophomore year, Jones was part of what was considered one of “the most highly anticipated” Kentucky basketball teams of all time based on pre-season hype, recruit expectations, and existing talent. On October 26, 2011, Jones participated in Kentucky’s annual Blue vs. White scrimmage, scoring a school-record 52 points. In 2011–12, he averaged 12.3 points and 7.2 rebounds in 38 game (34 starts). In the NCAA tournament that season, Jones helped Kentucky win their eighth national championship.

In April 2012, Jones was one of six Wildcats to enter the NBA draft, along with Anthony Davis, Michael Kidd-Gilchrist, Marquis Teague, Doron Lamb, and Darius Miller. All six players were drafted, setting a record for most players from one school drafted in the NBA draft.

Jones was selected by the Houston Rockets with the 18th overall pick in the 2012 NBA draft. During his rookie season, he had multiple assignments with the Rio Grande Valley Vipers of the NBA Development League. On February 4, 2013, Jones was named to the Prospects All-Star roster for the 2013 NBA D-League All-Star Game. However, he was replaced by Chris Wright because he was later recalled by the Rockets and thus was not an “active” player on a D-League roster.

In July 2013, Jones was arrested for allegedly stomping on a homeless man who was sleeping outside a nightclub in Portland, Oregon. He was charged with harassment, a Class B misdemeanor, and released on his own recognizance.

On January 18, 2014, Jones scored a career-high 36 points, along with 11 rebounds and 2 blocks, in a 114–104 win over the Milwaukee Bucks. He became the second youngest Rocket to score 30 points or more behind Hakeem Olajuwon.

After playing the first four games of the 2014–15 season, Jones went on to miss the next 41 games due to nerve inflammation in his left leg. He returned to action on January 28, 2015 against the Dallas Mavericks. On February 27, 2015, he scored a season-high 26 points in a 102-98 win over the Brooklyn Nets. He later missed six games in late March with a partially collapsed lung.

Jones again had an injury plagued season in 2015–16, going out in the preseason with a concussion and during the season with a lacerated eyelid and stitches that scratched his eye. Then on February 3, 2016, Jones crashed into another vehicle on his way to the Rockets’ flight to Phoenix, remained in the hospital for two days of tests, and was out for the remaining three games before the All-Star break. He returned to action on February 23, but lasted just four games before being deactivated indefinitely on March 2 due to a respiratory illness. On the court, Jones began the season as the starter at power forward with Donatas Motiejūnas out injured. But after 11 games, he was replaced in the starting lineup by Clint Capela.

On July 22, 2016, Jones signed with the New Orleans Pelicans. On November 16, 2016, he scored a then season-high 26 points while starting in place of the injured Anthony Davis in an 89–82 loss to the Orlando Magic. On January 23, 2017, he tied his career high with 36 points in a 124–122 win over the Cleveland Cavaliers. On February 23, 2017, he was waived by the Pelicans following the team’s acquisition of DeMarcus Cousins.

On March 4, 2017, Jones signed with the Milwaukee Bucks. He appeared in just three games for the Bucks before being waived by the team on April 1, 2017.

On August 1, 2017, Jones signed with the Qingdao DoubleStar Eagles of the Chinese Basketball Association. After getting kicked out of practice following a confrontation with the head coach, Jones was released by Qingdao in late November. In nine games, he averaged 22.3 points, 11.2 rebounds, 3.2 assists, 1.2 steals and 2.3 blocks per game.

On December 18, 2017, Jones was acquired by the Santa Cruz Warriors of the NBA G League.

On February 22, 2019, Jones signed a 10-day contract with the Houston Rockets. On March 4, he signed a second 10-day contract with the Rockets. On March 6, he spent a day with the Rio Grande Valley Vipers of the NBA G League on assignment. Upon the expiration of his second 10-day contract, he was not signed for the rest of the season by the Rockets.

In May 2019, Jones signed with the TNT KaTropa of the Philippine Basketball Association as the team’s import for the 2019 PBA Commissioner’s Cup.. In his PBA debut for the TNT Katropa, Jones recorded 41 points, 14 rebounds and 4 assists in almost 37 minutes of playing time in a win over the NLEX Road Warriors.. In his next game, Jones fuels the TNT with 43 points, 22 rebounds, 5 assists, 3 steals and 5 threes in a win over the Alaska Aces. His 43 points and 22 rebounds were his career-highs for any league that he has played, including the NBA. A week later, Jones recorded yet another 40-point game, this time against the Phoenix Fuelmasters. Jones recorded 40 points, 10 rebounds, 6 assists and 4 steals in a 114-88 blowout win against the Fuelmasters. In this game, Jones and Phoenix Fuelmasters forward Calvin Abueva were involved in an on-court altercation that nearly led to a full-scale brawl between two sides. Abueva was ejected for the rest of the game for he ignited the altercation. Ten days after the incident, Jones and the TNT Katropa were up against the PBA defending champs, the Barangay Ginebra. However, Jones and his team rallied easily against the defending champs. Jones recorded a monster statline of 17 points, 14 rebounds, 16 assists and 6 blocks for the Katropa. It was his first professional career triple-double. Jones joins fellow imports, Justin Brownlee and Allen Durham as the only PBA imports to rack up a triple-double in a PBA game in the past decade. The following game, Jones recorded a career-high 49 points to go along with 18 rebounds and 4 assists in a dominating win over the Meralco Bolts.. In the following game, Jones had another monster game as he recorded 39 points, 17 rebounds, 6 assists and 7 blocks in almost 47 minutes of playing time against the Columbian Dyip. On July 3, Jones recorded his second triple-double of the conference after having recorded 33 points, 21 rebounds and 13 assists in a 102-81 win over the Rain Or Shine Elasto Painters. On July 7, Jones recorded another triple-double as he racked up 36 points, 16 rebounds and 14 assists in a 115-97 win over the Blackwater Elite. After nine days, TNT played their last elimination game against the Purefoods Star Hotshots. Jones almost recorded his third straight triple-double, ending the game with 26 points, 13 rebounds and 8 assists in a 98-83 win over the Hotshots.

On August 11, 2019, Terrence Jones was crowned as the PBA’s best import of the conference, dethroning Justin Brownlee of the Barangay Ginebra San Miguel.

On October 21, 2020, it was reported that Mets de Guaynabo had added Jones to their roster.