As the season progressed, he remained second on the depth chart, seeing limited playing time due to injuries as well as starter Mike Hart being healthy and starting all thirteen games. Grady rushed for 187 yards and three touchdowns on 55 carries and added one reception for eight yards. His net rushing yards from scrimmage ranked fourth on the 2006 Michigan Wolverines football team.
As the season progressed, Grady remained second in line to play, receiving limited playing time due to injuries and Mike Hart's health, which allowed him to start all thirteen games. This led to Grady rushing for 187 yards and three touchdowns on 55 carries, while also catching one pass for eight yards. His total rushing yards from scrimmage placed fourth among the 2006 Michigan Wolverines football team.