Mermaid Terrace, adjacent to Mermaid's Beach Beach, is a seaside terrace on which a pair of mermaid statues have been erected. In Obama, there is a legend of a mermaid named Happyaku Bikuni, who is said to have eaten the flesh of a mermaid and lived for 800 years while remaining young and beautiful. The statue of the mermaid was erected in the hope that this town will be an ideal place of peace, beauty, and longevity. It is a sunset-viewing spot where you can see the sun setting over the calm Obama Sea, with the silhouette of the mermaid in the background.

From the jetty near Mermaid Terrace, you can enjoy fishing. There is also an 800-meter walking path from this terrace to Obama Park. In the vicinity, Hachiman Shrine, many temples, and traditional houses with lattice doors stand side by side. A leisurely stroll along the seaside path to Obama Park is also recommended to fully enjoy the historic seaside town of Obama.