Suppose that X is a (real or complex) Banach space, dimX ≥ 2, and N is a nest on X , with each N ∈ N is complemented in X whenever N − = N . A ternary derivation of AlgN is a triple of linear maps (γ, δ, τ ) of AlgN such that γ(AB) = δ(A)B + Aτ (B) for all A, B ∈ AlgN . We show that for linear maps δ, τ on AlgN there exists a unique linear map γ : AlgN → AlgN defined by γ(A) = RA + AT for some R, T ∈ AlgN such that (γ, δ, τ ) is a ternary derivation of AlgN if and only if δ, τ satisfy δ(A)B + Aτ (B) = 0 for any A, B ∈ AlgN with AB = 0. We also prove that every ternary derivation on AlgN is an inner ternary derivation. Our results are applied to characterize the (right or left) centralizers and derivations through zero products, local right (left) centralizers, right (left) ideal preserving maps and local derivations on nest algebras.