He served overseas with Fleet Marine Force (FMF), Pacific, attaining the rank of sergeant before being commissioned a second lieutenant in April 1952.

In September, Gray was reassigned to the III Marine Amphibious Force in Da Nang where he commanded the 1st Radio Battalion elements throughout I Corps until February 1968.

Following a brief tour in the United States, he returned to South Vietnam from June to September 1969 in conjunction with surveillance and reconnaissance matters in the I Corps area.

[citation needed] Promoted to major general in February 1980, he assumed command of the 2nd Marine Division, FMF, Atlantic, Camp Lejeune, North Carolina, in June 1981.

[11] While in the position, he was a confidant to then-Vice Admiral Arthur S. Moreau Jr., finding Marines for a covert team which targeted terrorists and drug traffickers.

This transformation from the Vietnam War-era is sometimes called the second enlightenment of the Marine Corps (the first being under Major General John A. Lejeune), and included development of a robust maritime special operations capability, emphasis on the education of leaders, establishment of Marine Corps University, and development of a long-range desert operations capability.

Disregarding his own safety, Major Gray, accompanied by another Marine, calmly and skillfully probed a cleared path forty meters through the unmarked minefield to the side of the wounded men.

Directing his companion to guide stretcher bearers along the cleared route, Major Gray moved one of the casualties away from a sensitized mine and began administering first aid to the injured Marines.

His timely and heroic actions in the face of great personal danger inspired all who served with him and were instrumental in saving the lives of two Marines.

Since 2004, as part of the Marine Corps Communications Awards Program, The General Alfred M. Gray Trophy is presented annually in honor of the 29th Commandant.

A Marine Captain on active duty serving in the military occupational specialty (MOS) 0602 Communications Information Systems Officer within the operating forces or supporting establishment is recognized with the trophy each year at an awards ceremony.