The English champions are set to be without their captain for the Stamford Bridge match as they attempt to overturn a 2-1 first-leg deficit
Terry sustained a hamstring injury during the 5-1 victory over Newcastle United in the Premier League on February 13 and has not featured since.
The 35-year-old captain is unlikely to make his return to action during the week at Stamford Bridge, but the Chelsea manager is confident Costa will feature despite sitting out Saturday's 1-1 draw with Stoke City with a tendon injury.
"John Terry, I don't think he will be ready to be play, but the rest are fit to play I think," Hiddink said on Sky Sports .
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The Dutchman's only defeat in 15 matches since returning to the helm was a 2-1 defeat to PSG in the first leg at the Parc des Princes.
Hiddink acknowledges his side face a huge challenge to turn the tie around, but hopes they can enjoy European success following a poor Premier League title defence.
"I think we made a good restart after December, so the season is not flourishing but going better," he added.
"But we have the chance to do beautiful things in the Champions League, which is not easy because I think they [PSG] are one of the most dangerous teams to play.
"They play beautiful football but they are also very effective, so it's a dangerous game but very, very challenging."