The area was first explored by Europeans in 1853, when
the Archer brothers arrived looking for pastures for their sheep. They settled by a small lake, originally called "Farris" or Padgole lagoon which was named
Gracemere in 1855. The name Gracemere comes from "Grace", the name of Thomas Archer's wife and "mere" which is a Scottish term for lake. Gracemere State School opened on 20 February 1871. As Gracemere developed as a dormitory town, further schools were needed with Waraburra State School opening on 27 January 1987 and St Paul's Catholic Primary School opening on 27 January 1988. Gracemere Shoppingworld opened in December 2014 with
Woolworths and
Best & Less operating as the anchor stores along with up to 20 speciality stores. In 2019, Gracemere was rapidly expanding with around 10 new housing estates under construction. == Demographics ==