Geographic information generalization is central to multi-scale spatial database construction and cartographic representation. The quality of terrain generalization for Digital Elevation Models (DEMs) directly determines geomorphological fidelity during scale transformation. However, existing DEM generalization methods, which are mostly limited to local geometric filtering or surface simplification, lack global awareness of macroscopic terrain structures. This limitation often causes “geographic alienation,” such as ridge breakage and gradient distortion. To address this issue, we propose TG-GAN, a terrain morphological factor-constrained multi-rate deep learning model for DEM generalization. This model overcomes the indiscriminate smoothing of conventional downsampling by embedding the “structure-first” principle into a deep learning framework. Specifically, a Generative Adversarial Network is used to enhance the generator's simulation capacity. Terrain morphological factors, including local relief and gradient, are innovatively incorporated as physical error terms into the loss function, guiding the network to adaptively reinforce primary terrain skeletons while smoothing secondary micro-terrain features during downscaling. A multi-objective loss function integrating elevation fidelity and gradient preservation enables intelligent terrain generalization in a physically constrained manner. Experiments conducted in mountainous regions of Chongqing, China, Alaska, USA, and Colorado, USA, with downscaling factors of 2× to 5× demonstrate that TG-GAN achieves robust multi-rate generalization while preserving the overall terrain structure. Compared with traditional interpolation methods, TG-GAN effectively avoids over-smoothing and structural breakage, excelling in preserving elevation extremes and slope morphology. Compared with conventional CNN-based methods, TG-GAN shows significant advantages in MAE, RMSE, and SSIM, especially under high downscaling factors. Overall, the proposed model offers a new data- and physics-driven paradigm for automated, multi-scale, and high-fidelity DEM generalization, supporting multi-scale mapping and related geomorphological analysis.