It is bordered by portions of Warwick State Forest to the east and west and is managed by the Massachusetts Department of Conservation and Recreation.

[2][3] Mount Grace is said to be named after the baby daughter of Mary Rowlandson, a woman captured by Wompanoag warriors during King Philip's War, who according to legend buried her deceased infant at the foot of the mountain during the march to Canada.

[2] By the turn of the 20th century, the mountain had been largely deforested, and conservationists, including former Warwick resident Dr. Paul W. Goldsbury, promoted the idea of having the state purchase it to create a state forest.

Picnic and skiing facilities were built beginning in 1930,[4] after legislation for the purchase passed in 1920.

[5] Crews with the Civilian Conservation Corps contributed summer and winter recreational features that included a 4.7 miles (7.6 km) snowshoeing trail.