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A sprawling metropolis, Gracemeria was divided into several districts. The main district, Novusmeria, also known as Downtown Gracemeria, was a major urban area dominated by skyscrapers and highrise buildings, and was home to the capitol building of the Emmerian government. The western area of the city housed the Chester City borough, on which the historical Gracemeria Castle was erected. Both areas were divided by a body of water, Gracemeria Bay, over which the King's Bridge connecting them was erected.
Gracemeria Air Force Base, an airbase of the Republic of Emmeria Air Force, was built in the vicinity of Chester City. The northern areas of the city were mostly suburban neighborhoods, while the ones east from Novusmeria were commercial and industrial buildings with extensive gigantography. The area, called "New Gracemeria", was the home to a popular radio station run by DJ Zed Waters.
In the late 20th century, the Emmerian government, under the suggestion of Alberto Lawrence, constructed a network of underground shelters around Gracemeria and other urban areas of Emmeria in anticipation of the 1994XF04 Ulysses impact, which greatly contributed to reducing the number of human losses after it made planetfall. In early 1999, it had become one of the cities in Anea most populated by Ulysses refugees, and the second in the world after Oured of the Osean Federation.
In the outbreak of the Emmeria-Estovakia War, the city was invaded and occupied by the Estovakian armed forces with the aid of the P-1112 Aigaion, forcing the Emmerian commanders to order a strategic retreat. It was soon occupied by Gustav Dvornik's forces, who turned Gracemeria Air Force Base into their main base of operations. Emmerian forces later attempted to retake the capital, but were driven away by the Aigaion under a series of operations dubbed "King and Balloon".
Later on, in March 31 of 2016, the Emmerian armed forces invaded Gracemeria to reclaim it from Dvornik, who fled to Estovakia as they circled the city. It was eventually liberated after a period of heavy fighting across the capital and the intervention of the Strigon Team's Ilya Pasternak, who flew a CFA-44 Nosferatu in a suicide attack to allow his wingmen to escape. Celebrations were held the night following the liberation of the city, which came under a failed cruise missile attack from the Chandelier, a giant anti-asteroid railgun in Sonne Island.