The wave nearly developed into a tropical cyclone on August 21, though its fast forward motion dislocated the low level circulation from the deep convection.

The wave entered an area of dry air in the central Atlantic Ocean, and by late on August 22 most of the convection dissipated from the system.

On August 24, convection increased as the wave passed through the Lesser Antilles, though strong southwesterly upper level wind shear prevented further development.

The tropical wave moved through the Caribbean Sea, and developed deep convection due to more favorable conditions over the Gulf of Honduras on August 28.

In addition, an upper-level low located over Brownsville, Texas produced shear over the western portion of the system, which limited outflow to the east side.

Forecasters predicted the upper-level low to weaken, allowing for the possibility of Grace to intensify to a 65 mph (105 km/h) tropical storm over warm waters.

[1] Local National Weather Service offices requested a voluntary evacuation for western Galveston Island including Jamaica Beach, the Bolivar Peninsula, and coastal areas of Brazoria and Matagorda counties,[3] though few residents heeded the warnings.

In addition to its impact on the United States, the outer rainbands of Grace caused light rainfall in Yucatán and northern Tamaulipas.

[6] The outer bands of Grace spawned a waterspout just south of the western tip of Galveston Island, prompting the issuance of a tornado warning.

[7][8] In Oklahoma, moisture from the storm, combined with a slow-moving cold front, produced heavy rainfall across the state, peaking at 8.98 inches (228 mm) in Courtney.

[6] In Missouri, the cold front combined with moisture from the remnants of Grace brought temporary relief to a severe drought[10] by producing light to moderate rainfall of up to 5 inches (130 mm) in the southeastern portion of the state.

Residents prepared sand bags to prevent overflowing rivers and creeks, though rising waters entered streets and over 700 homes.