A developing extratropical storm to the north turned Grace eastward; the hurricane was eventually absorbed into the large circulation of the larger low-pressure system.

The storm system initially contained subtropical characteristics, and the center of circulation lacked deep convection for several days.

[3] Grace reached its peak intensity with winds of 105 mph (165 km/h) and a minimum central barometric pressure of 980 mbar (hPa; 28.94 inHg), ranking as a Category 2.

[5] The hurricane tracked generally northwestward until October 28, when an extratropical cyclone formed along an approaching cold front off the New England coast.

[6] At around the same time, an eye feature associated with Hurricane Grace became apparent on satellite imagery, despite a lack of strong convective activity around the storm's center.

[9] The nor'easter significantly strengthened as a result of the temperature contrast between the cold air to the northwest and the warmth and humidity associated with the remnants of Hurricane Grace.

The cyclone attained its peak intensity 390 miles (630 km) south of Halifax, Nova Scotia, as a Category 1 hurricane, with sustained winds of 75 mph (120 km/h).

[15] Despite the light impacts from Hurricane Grace, the resultant nor'easter caused extensive coastal damage, high seas, and powerful winds.

Extensive coastal flooding occurred along the coast of the Mid-Atlantic and Northeastern U.S., with effects as far north as Newfoundland and as far south as Jamaica.