Ferdinand gave his testimony to the independent panel at the hearing at Wembley Stadium, with Terry in attendance to hear the evidence against him..
Ferdinand was at Wembley all morning, leaving just before midday, while Terry remained at the hearing until mid-afternoon. Terry is expected back on Tuesday and the case could last most of the week.
Terry announced his international retirement on Sunday night on the eve of the hearing and England manager Roy Hodgson said in a statement: "I'd like to thank John Terry for his commitment to the England team since I became manager. I am of course disappointed to lose a player of John's international experience and exceptional ability."
Terry effectively accused the FA of forcing his hand, claiming that it was "untenable" for him to play for England any more when the association were pursuing charges against him despite him being cleared in court of a racially-aggravated public order offence over the same incident last October.
FA general secretary Alex Horne denied this, however, telling Sky Sports News: "I don't see how we've made it untenable - they're two very separate processes. It's something that happened in a match between QPR and Chelsea - it shouldn't be taking a year to resolve but we feel we're reaching a conclusion on that."
A similar hearing involving Liverpool's Luis Suarez took four days and led to the Liverpool striker being banned for eight matches. Terry could face a similarly lengthy ban if found guilty by the FA of using racist language during Chelsea's Premier League defeat at QPR on October 23 last year - a charge he categorically denies.
The 31-year-old was found not guilty in court in July, with the prosecution unable to prove he had called Ferdinand a "f****** black c***" as an insult. Terry admitted using the words, but insisted he had only been repeating words he thought Ferdinand had accused him of saying.
The FA also thanked Terry for his England service. A statement said: "Following his announcement that he is retiring from the England team, The FA would like to thank John Terry for all of his efforts with the national team over the past decade. During his 78 appearances John has always given his full commitment to the team."
Meanwhile, Newcastle manager Alan Pardew believes Terry's loss will be a huge blow to England. He said: "I just know for the manager of England, it's a blow because he is a great player and the pool isn't great for English players at the moment and the team. That's the tough end for us, but that is a personal decision John has made."