Grace Tolly was the wife of Enoch Tolly and the mother of Naomi and Hannah Tolly. Enoch didn't get along with many of the villagers, and their financial issues lead the family to be frugal. Enoch disapproved of Hannah's life in Hotten, and when Hannah decided against visiting the family one Sunday in February 1981 as she normally did, she returned home dreading Enoch's reaction. However, she was horrified to return home to the news that Enoch had been in a tractor accident and Naomi had discovered his body.

With Enoch gone, running the farm became too much work for Grace. Grace turned down a generous offer from NY Estates's Home Farm manager to buy absolutely everything on the farm, adamant that Tolly's Farm was to stay in the family and that Hannah would return to help. However, Hannah refused to return home and Grace was furious. Grace's night in shining armour came in the form of Seth Armstrong, a former lover. Seth spoke to Daniel Hawkins, who had recently resigned from his job at Home Farm, and Daniel accepted a job as a farmhand on the farm. However, in 1982, Grace found running the farm too demanding with too little reward, and with Naomi gone, she decided to sell up and move to Hotten, accepting new Home Farm manager Joe Sugden's offer, which was the same as Richard's. Grace said goodbye to a disappointed Seth, who tried to talk her out of leaving, and began a new life in Hotten.

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