While the rulebook says that if a Terror tile was played, it will prevent the Reappearance tile from being used.
What it doesn't say is if the HQ's Revival ability may be used if a battle occurs.
I'd argue that Revival will work, since you aren't (directly) placing the units on the board. Instead you place wound tokens on the boards and these are replaced with units from the zombie-pool.
What do you think?
I would say that a Terror tile prevents the Revival ability. The Reappearance had to be mentioned, because it is an Instant Action Tile, which normally is not blocked by the Terror.
Smart rules wrote:
Using this tile prevents the opponent from placing any unit on the board in the next turn (however he may use Instant Action Tiles, move units thanks to their Mobility, etc.).
Death Breath rules wrote:
[...] Each unit chosen this way must be placed on one of the hexes with a wound marker on it.