He ran unsuccessfully in 1995 elections as the presidential candidate for the coalition between the Frente de Unidad Nacional (FUN) and Partido Institucional Democrático (PID) parties.
He continued the fight against dissident elements from both the Marxist-inspired guerrillas and right-wing hardliners, including some within the army.
During his term as Defense Minister, he played a pivotal role in upholding the elected government from at least two coup attempts[7] led by civil and military right-wing hardliners, in May 1988[8] and May 1989.
[9] After finishing his term as Defense Minister, Gramajo entered the graduate program at Harvard University's John F. Kennedy School of Government, where he obtained a degree in public administration in 1991.
While in the United States, he was served in a combined suit under Alien Tort Claims Act by the Center for Constitutional Rights, representing eight Kanjobal Indians, who survived the destruction of their village in the early 1980s, and the American nun Dianna Ortiz, who had been abducted and tortured in Guatemala in 1989.