The 31-year-old has been signed on a year-long loan from Celtic and is clearly the midfield re-enforcement manager David Moyes wanted after his attempts to sign Manuel Fernandes from Benfica collapsed at the weekend.
Gravesen has been out of favour at Celtic for some time and the subject of transfer speculation involving Sheffield United and Fulham this summer.
The Denmark international first moved to Everton from Hamburg for £2.5million but with his contract due to expire in the summer of 2005, Everton sold the player to Real Madrid for £2.5million in the January of that year.
But now he is back on Merseyside, where he became a cult figure among Toffees fans.
He said: "I am really looking forward to coming back to Everton, it is a chance to play top-flight football in the Premier League again."
Gravesen moved to Celtic in 2006, where he has had a chequered time, and he has not figured in any of their matches this season.