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|Note: This item does not exist. It is a hoax.|
During late December 2005 several people posted in Guild Wars related forums reports about having found this item dropping from Terrorweb Dryders within the Underworld. Screenshots and even a video have been provided as proof, however it has since officially been confirmed to be a hoax. Quote from Gaile Gray: "Confirmed. Not real. Sorry if anyone is disappointed. One of our team members who is very familiar with in-game items dropped me an email because he knew there was some question about this particular item, and he stated that we've not added a Terror Shield to the game." on the Guild Wars Guru Forums.
The hoax was perpetrated by a user who edited his game world using a tool called GW Texture Editor so that, in his client, Tower Shields appeared as "Terror Shields." Because of this, it was easy to create screenshots and videos of the shield in game. The Terror Shield texture was created from two different wall textures used on the Isle of the Dead Guild Hall which were edited together.
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The fake Terror Shield should not be confused with the Aegis of Terror shield, which does exist. Some people have been advertising WTS or WTB for a "terror shield", when they really mean the Aegis of Terror.