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.
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.