Graceville is a city in Big Stone County, Minnesota, United States. The population was 577 at the 2010 census.
According to the United States Census Bureau, the city has a total area of 0.6 square miles (1.6 km²), all of it land.
U.S. Route 75 and Minnesota State Highway 28 are the two major highways that run through the community. The town's main street is named Studdart Avenue. The town is located on the northeast corner of Toqua Lake, a recreational lake surrounded by two campgrounds, a golf course and a shooting club.