Luanne revealed her pregnancy to Lucky and the Hill family in the episode "Edu-macating Lucky." The two ended up having a shotgun wedding, even though they had wanted a more traditional ceremony. Luanne, loopy from pain medication, suggested giving Gracie the name Lasagna when she was born. Thanks to Hank and Peggy intervening, she was named Gracie instead. Her middle name is Margaret in honor of Peggy by Peggy herself. Gracie is an extremely happy baby most of the time, giggling and doing strange things that make her laugh. She last appeared in the series finale.