An insulation displacement terminal is formed entirely of an integral metal sheet. The terminal includes first and second plate-like insulation displacement groove-forming portions opposed to each other in a first direction along which an insulated wire extends. Each of the insulation displacement groove-forming portions has an insulation displacement blade of a U-shape defining an insulation displacement groove. Bottom portions of the insulation displacement groove-forming portions are interconnected by an interconnecting portion. A lead extends downwardly from one side edge of the interconnecting portion. A holding space for an insulation of the insulated wire is formed between a pair of plate portions which are formed respectively at opposite side edges of the first insulation displacement groove-forming portion by bending. Each of the plate portions has a retaining projection and a bendable piece portion.