Branislav Ivanovic's solitary strike means Mourinho's side are now well and truly in the hunt for league honours, level with second-placed City and only two points behind Arsenal.
Mourinho's methods may come in for criticism but he does know how to set up a team to get a result, something which Terry hailed following the victory for the Blues.
When asked if the result told the story of a Mourinho masterclass, Terry told Sky Sports 1: "Very much so. This is where he comes into his own.
"We spent a couple of days working on their strengths and weaknesses.
"After the disappointment of dropping two points against West Ham it was important to come here and bounce back.
"In the first 15 minutes they were very good and made it difficult. We showed a lot of character. Overall we were very sold and happy for the win."
Terry also believes that Monday night's victory over City - who failed to get on the scoresheet tonight in a season that has so far seen them almost score at will - could give other teams confidence against Manuel Pellegrini's side.
"They've been phenomenal scoring goals and turning teams over," Terry added.
"It was important not just for us but for other teams, showing that they can be beaten."