Graydon became Chief of the Air Staff in November 1992, was appointed Air Aide-de-Camp on 15 December 1992 and advanced to Knight Grand Cross of the Order of the Bath in the 1993 New Year Honours. As Chief of the Air Staff he advised the British Government on the implementation of No Fly Zones in Iraq and Bosnia. He was also implemented the Front Line First initiative launched in July 1994 which contributed to reducing the RAF manpower from around 75,000 to around 53,000. He retired from the Royal Air Force in April 1997.