Terror Squad Entertainment was formed in 1992 by fat joe after he began to associate himself with [Big Pun].In 1993 Fat Joe got a distribution deal with Relativity Records.Joe's deal with Relativity led to the release of his debut album [Represent].The label got plenty of exposure in New York with the release of his hit single [Flow Joe].He Soon signed [Big Pun] in 1994 and [Prospect], and [Cuban Link] to the label.Fat Joe's second album [Jealous One's Envy] was released in 1995 by Terror Squad,Soon after Fat Joe would begin his search for a new distributing label.Fat Joe move the label into the Atlantic Records umbrella.Terror Squad debuted as a group in 1998 on the track [The Hideden Hand] Fat Joe released [Don Cartagena] which debuted at number 7 on the Billboard 200.In 1999, Terror Squad released its debut album[ The Album]. The album was somewhat successful and made a legit name for the group and the label. In 2000, Big Pun died, and his album [Yeeeah Baby] was released posthumously that year.
Terror Squad released its second album [True Story]. The album went Platinum making it tied for the highest-selling album in the label's history, in addition, the song [Lean Back] reached number one on the Billboard Hot 100. In 2006 Fat Joe finalized a distribution deal for Terror Squad Entertainment through Imperial Records and EMI.