On good terms means on a friendly footing with somebody. Not close friends necessarily — no bad feeling.
It takes with. The phrase is used most about relationships that could easily have gone the other way, so a couple who divorced and remain on good terms have managed something. It is measured rather than warm, which is exactly its usefulness. The opposite is on bad terms, and being on speaking terms is the barest possible version of the same idea.
1phraseon good termsIn a friendly relationship with somebody.
“They stayed on good terms after the business closed.”
Practised in Idioms, A Man Called Ove
First appears in chapter 34 of A Man Called Ove.
Practise this word