Gracey grew up in Melbourne – in Carlton then Kew – then started working in visual effects and music videos before making his reputation in advertising, gaining a name for himself with his Christmas commercials in the UK and US.

"Baz would shoot some footage of Nicole Kidman singing or something and we'd do little mock-ups, and cut mood reels together.

"[3] Gracey made his feature directorial debut in 2017 with The Greatest Showman starring Hugh Jackman as P. T.

[4][5] Gracey was also slated to direct an adaptation of manga series Naruto,[6] but was replaced by Destin Daniel Cretton,[7] and an adaptation of the novel Daughter of Smoke and Bone,[8] which fell in development hell.

In 2022, Gracey directed a short film for Tourism Australia, G'Day, starring Rose Byrne and Will Arnett, with cameos from Hamish Blake & Andy Lee.