Graber got his first collegiate head coaching job on December 16, 1981, when he was hired by Montana State University. During his only season in Bozeman, he led the Bobcats to a 6–5 overall record and a tie for the first place in the Big Sky Conference with a 5–2 league record. He left the school in February 1983 to become an assistant coach with the Kansas City Chiefs of the National Football League.