In temperament the breed is lively, clever and alert. It is affectionate and playful with its own household and watchful with strangers, which suited its old role as a farm guard. It keeps the determination of a working terrier and has a reputation for being quarrelsome with other dogs.
It is a compact, muscular dog with a long head, a beard and a fringe falling over the eyes, and small folded ears. The soft, wavy coat has no undercoat and sheds little. Puppies are born black, and the coat clears to its slate-blue or blue-grey shade only as they mature.
The Kerry Blue Terrier took its modern shape in the decades after its first appearances in the show ring. Irish shows at first required the breed to be exhibited untrimmed, in its natural coat, while British exhibitors favoured a groomed outline, and the trimmed style eventually prevailed. The Kennel Club in Britain recognised the breed in the early nineteen-twenties, and it reached America in the same decade. The Irish leader Michael Collins kept one, and the breed is sometimes described, informally, as Ireland's national dog. It was an all-purpose working terrier, used against vermin and small game, and also to herd stock and guard the farm.