Clean the inside of a glass container thoroughly using hot water and dish soap. Rinse the soap out completely. Allow the container to dry before proceeding.
Place a 1-inch layer of pebbles across the bottom of the glass container. Layer 1/2 inch of activated charcoal over the layer of pebbles. Cover this drainage layer with a layer of sphagnum moss.
Mix compost and potting soil in equal parts to create a loose growing medium. Layer the mixture on top of the sphagnum moss until it is about 3 inches deep. Use the growing medium to create elevated areas if you wish to have different planting areas in your terrarium.
Place some flat rocks and branches on the bottom of the terrarium for the fern moss to scramble over. Moisten the medium until it is wet to touch, but not soaked, and place a mat of fern moss on the medium. Spray the moss with a spray bottle if it feels dry. Place a cover on the terrarium, and put it in a location with only indirect sunlight.