The word ‘Gothic’ was originally a derogatory term which meant ‘barbarous’, ‘other’ or ‘crude’. When The Castle of Otranto (1764) written by Horace Walpole was published, it was considered to be the first ‘Gothic’ novel. Based on similar themes that contain grisly descriptions of the supernatural, underground vaults, secrets about the past, etc., two novels from the late eighteenth century, Matthew Lewis’s The Monk and Ann Radcliffe’s The Italian, have been seen as classic examples of two distinct narrative modes, the so-called ‘Masculine’ and ‘Feminine’ Gothic. This thesis will explore the critical definitions of these two modes, followed by an analysis of the concepts of ‘terror’ and ‘horror’. Although critics have agreed that ‘horror’ Gothic is compatible with ‘Masculine’ Gothic and ‘terror’ Gothic with ‘Feminine’ Gothic, the debate on the varying definitions and usages of ‘terror’ and ‘horror’ are still ongoing. After considering some of these definitions, the actual usage of ‘terror and ‘horror’ in The Monk and The Italian will be considered in order to determine how their usage differs in the two modes, and to what ends they are employed. Key words: Gothic, Matthew G. Lewis, Ann Radcliffe, Masculine Gothic, Feminine Gothic, terror, horror, transgression.