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Terracotta gets its name from the old Latin word "terra cocta" which was transferred to Italian as "terra cotta". Its literal meaning is "baked earth" or "cooked earth" which explains what is terracotta tile. Terracotta has a rustic old-world charm when it is used as a flooring material. The atmosphere is both rugged and subdued. It is also a good material when certain regional home styles are desired—terracotta is perfect match for Mexican, Mediterranean, or Southwest decors.