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is a census-designated place (CDP) in Suffolk County, New York, United States. The population was 5,641 at the 2000 census.
In 1914, a New York City real estate agent developed houses in the woods between East Islip and Central Islip State Hospital. Many who worked in the hospital lived here. The town was originally called Germantown to attract people of German origin, but was renamed to Islip Terrace because of German dissent due to World War I. Its name is said to come from the fact that the town is situated north of East Islip.