[4][3][5][6][7] Grazioli began establishing in the province of Ljubljana local sections of the Fascist organizations that already existed in Italy, such as the Gioventù Italiana del Littorio and the Opera Nazionale Dopolavoro.

All the former Slovenian officials that had been suspended following the invasion were reassigned to their posts; at Grazioli's request, the handling of public order was removed from the Army and a police station was set up in Ljubljana.

[11][12] However, in the following months, acts of hostility by part of the Slovenian population began to take place more and more openly and Grazioli, following the killing of a German soldier, ordered a large round-up led by the Ljubljana police headquarters starting from 1 August.

Meanwhile, military authorities, represented by General Mario Robotti, following the rise in partisan activity, began to complain about the particular "legal status" of the province, which prevented “energic” actions.

In early December, demonstrations against Italian occupation took place, including a bomb attack in Ljubljana that caused no casualties but resulted in Italian soldiers and blackshirts opening fire and killing two Slovene civilians; Grazioli tried to minimize these events and emphasized the reaction of the garrison soldiers, who had let the situation “slip away” and opened fire on civilians.

Two days later, Grazioli and Robotti decided to implement a complete blockade of the city, which was surrounded with barbed wire and checkpoints to prevent the escape of suspects, restricting passage only to holders of a special pass.

Starting from 23 March, despite the negative opinion of the police headquarters and the Carabinieri commands, Grazioli obtained that the law enforcement agencies employed by him replace the soldiers at the gates of the fence that surrounded Ljubljana.

Seeing the possibility of obtaining a pacification of the region fade, Grazioli accepted the repressive measures of the military authorities, and contributed with the request to Rome of another 1,300 carabinieri to reinforce the garrisons.

On 27 May Robotti, taking advantage of the absence of Grazioli (who was in Rome for reasons of service), issued orders that placed all the police forces of Slovenia under his command.

Meanwhile, the death of Natlačen, the rising prospects of an Allied victory in the war and the dilution of the communist positions of the Slovenian People's Liberation Front led once again to a diminished sympathy of the Slovenes towards the Italians, especially in the most important cities.

On 1 October 1943 he was appointed once again as High Commissioner of Ljubljana by the RSI authorities, but the head of the German occupation administration, Friedrich Rainer, forbade this, reserving all power in Slovenia for himself.

[28][3] Mussolini then made Grazioli head of the Province of Bergamo, later of Ravenna and finally of Turin, participating in the persecution of Jews, anti-Fascists, and draft dodgers.

On 27 April 1945 he fled from Turin and on 5 May he surrendered to Allied troops; he was held in various POW Camps and then handed over to Italian authorities to be tried for collaboration with the Nazis.