Grace first sang professionally in 1931. She sang on radio in the American South and worked with the bands of Al Katz (1933), Tommy Christian (1934), and Mal Hallett (1934–37). From 1937 to 1940 she recorded for Decca Records, and her sidemen on these recordings included Bobby Hackett, Jack Teagarden, Charlie Shavers, Buster Bailey, Pee Wee Russell, Bob Crosby and His Orchestra, and Bud Freeman.
She left the music industry in 1940 and joined the Women's Army Corps a short time later, where she sang at war bond rallies and other political events. She lost her voice as a result of these activities. She was unable to speak for years and was never again able to sing.
- Derek Jenkins, (2007) "Teddy Grace Once lost, now found." The Oxford American Issue 58 Ninth Annual Southern Music Issue