-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 CDiESUhZ4B7yzqqrFb4Yb+gPETaz5cNT5Oe0THBfiWtcLyQr2NzRoKOL+qXNceX7
 oty09ydg80Xl1I6LZkiROw==

<SEC-DOCUMENT>0001208226-03-000010.txt : 20030702
<SEC-HEADER>0001208226-03-000010.hdr.sgml : 20030702
<ACCEPTANCE-DATETIME>20030702120759
ACCESSION NUMBER:		0001208226-03-000010
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030701
FILED AS OF DATE:		20030702

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GRACO INC
		CENTRAL INDEX KEY:			0000042888
		STANDARD INDUSTRIAL CLASSIFICATION:	PUMPS & PUMPING EQUIPMENT [3561]
		IRS NUMBER:				410285640
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1225

	BUSINESS ADDRESS:	
		STREET 1:		88 11TH AVENUE NE
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55413-1894
		BUSINESS PHONE:		6126236000

	MAIL ADDRESS:	
		STREET 1:		C/O CORPORATE SERVICE COMPANY
		STREET 2:		MULTIFOODS TOWER, 33 SOUTH 6TH STREET
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55402

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CARROLL WILLIAM J
		CENTRAL INDEX KEY:			0001208226

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09249
		FILM NUMBER:		03770455

	BUSINESS ADDRESS:	
		STREET 1:		P.O. BOX 1000
		CITY:			TOLEDO
		STATE:			OH
		ZIP:			43697
		BUSINESS PHONE:		419-535-4500

	MAIL ADDRESS:	
		STREET 1:		418 RIVERSIDE DR
		CITY:			ROSSFORD
		STATE:			OH
		ZIP:			43460
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgardoc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0101</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2003-07-01</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000042888</issuerCik>
        <issuerName>GRACO INC</issuerName>
        <issuerTradingSymbol>GGG</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001208226</rptOwnerCik>
            <rptOwnerName>CARROLL WILLIAM J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>  </rptOwnerStreet1>
            <rptOwnerStreet2>  </rptOwnerStreet2>
            <rptOwnerCity>  </rptOwnerCity>
            <rptOwnerState>  </rptOwnerState>
            <rptOwnerZipCode>  </rptOwnerZipCode>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeSecurity>
        <securityTitle>
            <value>Phantom Stock Units</value>
                <footnoteId id="F1"/>
        </securityTitle>
        <conversionOrExercisePrice>
            <value>0</value>
        </conversionOrExercisePrice>
        <transactionDate>
            <value>2003-07-01</value>
                <footnoteId id="F2"/>
        </transactionDate>
        <transactionCoding>
            <transactionFormType>4</transactionFormType>
            <transactionCode>A</transactionCode>
            <equitySwapInvolved>0</equitySwapInvolved>
        </transactionCoding>
        <transactionAmounts>
            <transactionShares>
                <value>300.47</value>
                <footnoteId id="F3"/>
            </transactionShares>
            <transactionValue>
                <value>0</value>
            </transactionValue>
            <transactionAcquiredDisposedCode>
                <value>A</value>
            </transactionAcquiredDisposedCode>
        </transactionAmounts>
        <exerciseDate>
            <value>1988-08-08</value>
        </exerciseDate>
        <expirationDate>
            <value>1988-08-08</value>
        </expirationDate>
        <underlyingSecurity>
            <underlyingSecurityTitle>
                <value>Common Stock</value>
            </underlyingSecurityTitle>
            <underlyingSecurityShares>
                <value>300.47</value>
            </underlyingSecurityShares>
        </underlyingSecurity>
        <postTransactionAmounts>
            <valueOwnedFollowingTransaction>
                <value>300.47</value>
            </valueOwnedFollowingTransaction>
        </postTransactionAmounts>
        <ownershipNature>
            <directOrIndirectOwnership>
                <value>D</value>
            </directOrIndirectOwnership>
        </ownershipNature>
    </derivativeSecurity>

    <footnotes>
        <footnote id="F1">Dividends of 13.712 on the accrued phantom stock units were credited on May 7, 2003 under the Graco Inc. Nonemployee Director Stock Plan and are to be settled 100% in Graco common stock in a lump sum or installments upon reporting person's termination of service on the Board.</footnote>
        <footnote id="F2">Number of phantom stock units beneficially owned following reported transaction is 5,371.526.</footnote>
        <footnote id="F3">The phantom stock units were accrued under the Graco Inc. Nonemployee Director Stock Plan and are to be settled 100% in Graco common stock in a lump sum or installments upon reporting person's termination of service on the Board.     </footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: Kristen C. Nelson  For: William J. Carroll</signatureName>
        <signatureDate>2003-07-02</signatureDate>
    </ownerSignature>

</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
