Grace was the youngest of the three Sheffield children. Grace was seeing a therapist when Fran Fine came to work for the family which ultimately was advised by C.C. who apparently 'had been going for twenty years'. In the first season Grace had many imaginary friends, such as Imogene. Grace and Fran became very close, to the point where Grace saw Fran as a maternal figure, since she could not remember her own deceased mother, Sara.
Grace was called "Gracie" by Fran. Grace would often accompany Fran shopping, and aided Fran in her schemes. Grace eventually adopted some of Fran's Jewish slang, morals and quotes, and dressing habits.
Grace accompanied her family to Los Angeles, when her father accepted an offer to produce a T.V. show there.