Terrace systems have been instrumental in the evolution of agriculture across various cultural contexts. This technology offers several benefits, including soil and water conservation, improved soil fertility, enhanced agricultural management, and increased crop yields. Several studies have been conducted on agricultural terraces in Mesoamerica. Nevertheless, there has been a lack of research on anthropogenic soils and ethnopedological studies in Mexico. This study aimed to ascertain the local soil knowledge and describe the ancestral terrace systems within a popoloca community in southern Puebla, Mexico. An ethnopedological survey was conducted on a 10,366 ha area to determine the land types and terrace systems present. Surface terraced soil samples were collected, and nine soil profiles within runoff terraces were described. The objectives were as follows: 1) to characterize and describe terrace systems in Santiago Acatepec, 2) to understand the indigenous land classification system and 3) to study the relation and impact of terraces systems on soil formation and WRB classification. The results indicate two types of terraces (hillside and runoff terraces), covering 2578 ha of land. Farmers recognize eight distinct land classes, with unique characteristics and agricultural uses. The land classes encompass both anthropogenic and natural soils. These land classes are classified as Terric Anthrosols, Eutric Regosols, Eutric Leptosols, and Pellic Vertisols. These results show farmers' detailed knowledge about their soils and the advantages and limitations of terraces. The modern and ancient terraces were classified according to seven diverse types of embankments or walls. The traditional embankment, designated as “cuaxustles,” is associated with runoff terraces and is known to have a lifespan exceeding one hundred years. Following the construction of a terrace, the land in question can be cultivated for agricultural purposes after a period of two years. The traditional knowledge of the soil has enabled the farmers of Acatepec to establish new agricultural areas, select crops that are well-suited to the soil conditions and climate of the region, and implement long-term modifications to the landscape. The findings indicate that it is feasible to implement environmental modifications that prioritize soil conservation and enhancement on a significant scale while also considering economic factors and the time frame involved.