The Foundation was established by Prince Rainier III of Monaco to honor the legacy of the late Princess Grace, who supported Monégasque arts in culture as well as numerous up-and-coming American artists during her lifetime.

[3] The first financial grants in the form of scholarships, apprenticeships, and fellowships were awarded in 1984 to artists associated with schools or performing arts companies in the dance and theater.

In addition to a $25,000 cash gift, the awardees are presented with a bronze statuette of Princess Grace created by the Dutch artist Kees Verkade.

[6] As of 2020, sixty-seven artists have received this award, including Oscar Isaac, John M. Chu, Leslie Odom Jr., Chinonye Chukwu, Gillian Murphy, David Hallberg, Anna D. Shapiro, and Rose Bond.

Recipients to date include George Lucas, Glenn Close, Denzel Washington, Julie Andrews, Dick Van Dyke, Robert Redford, Queen Latifah and James Cameron.