Grayling is located 18 air miles north of Anvik on the west bank of the Yukon River, east of the Nulato Hills, with a population of 194. The climate is continental, with long, cold winters and relatively warm summers. Temperature extremes range between -60 to 87 °F. Annual snowfall averages 110 inches, with 21 inches of total precipitation. The Yukon River is ice-free from June through October. In 1900, the U.S. Revenue steamer Nunivak reported 75 inhabitants, a store, and a large woodyard to supply steamers. Between 1962 and 1966, 25 families moved from Holikachuk on the Innoko River to Grayling. Holikachuk was prone to annual spring flooding, and low water levels made the return trip from Yukon fish camps each year difficult. The city government was incorporated in 1969.
Grayling's economy is heavily dependent on subsistence activities, and most employment is seasonal. Currently, fifteen residents hold fresh water fish permits provided by Kwik’Pak Fisheries. Subsistence activities include fishing, hunting, trapping, gathering, and gardening. Salmon, moose, black bear, small game, and waterfowl are utilized. In summer, access to Grayling is by air, riverboat, or barge. No roads connect Grayling with other communities, and skiffs are used for transportation up and down the river during summer. During odd-numbered years, Grayling is a checkpoint on the annual 1,049 mile Iditarod Trail Sled Dog Race.