Lake Grace is a town located in the Eastern Wheatbelt region of Western Australia, 345 kilometres (214 mi) from Perth along State Route 107 between Wagin and Ravensthorpe. It is the main town in the Shire of Lake Grace.
The area was first taken up for agriculture around 1911, and in 1913 a school was established here and named Lake Grace after the nearby lake. In 1914 the government planned to extend the railway network from Kukerin to Lake Grace, and local settlers lobbied for a townsite to be declared at the terminus. The railway was constructed in 1916, and terminated close to the site of the existing school. The townsite of Lake Grace was gazetted later in 1916.
Lake Grace has a population of about 530 and is a typical wheatbelt town with the inevitable grain silos, CBH bulk loading facilities and a pub. It contains a district high school, Westpac Bank, shopping facilities, accommodation (hotel, motel, caravan park), council offices and a telecentre.