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Toronto Raptors' Terence Davis

Big news for Toronto Raptors guard Terence Davis ... prosecutors have dropped the domestic violence charges against him stemming from an Oct. 2020 incident.

As we previously reported ... 23-year-old Davis was arrested after officials say he repeatedly punched his ex-GF in the face during an argument at the Beekman Tower hotel in NY.

Davis' ex-GF also told police he smashed her phone when she refused to stop recording him during the alleged incident.

Cops were called to the scene and he was ultimately booked for misdemeanor assault and misdemeanor criminal mischief charges.

But now, prosecutors have dropped the case against Davis, as first reported by ESPN's Adrian Wojnarowski.