"So I kept on diving and felt around for him, when I felt a leg, I did not know if it was him or not but I just pulled it to the surface, then I put my arm under him to keep his head up and got him back to the sand.
"He was a bit scared and was not talking much. I think he was a bit shocked and he was coughing up lots. I think he drank a lot of sea water, but it felt good to have him back on the beach."
Grace, who has been a junior surf member at the Mount club since she was 5, told the Bay of Plenty Times Weekend she did not get scared because her "training kicked in".
"It was my first rescue," she said.
"I did not feel scared at all, it felt really easy because I have been taught all the basics at the club, all my family is involved in surf lifesaving, my mum and dad and my sisters.
"One day I am hoping to be a qualified lifeguard so I can rescue more people."
Greg said he was proud of his daughter.
"I had just called the kids in when it all happened as they were getting out a bit too deep," he said.
"Waist deep is the rule, but all these waves came in quick succession. I was getting ready to go in and get them when I noticed Grace had it all under control.
"She just knew what she was doing, it was great to see all those techniques they teach the young ones at Nippers in practice.
"I was really impressed and I am so proud of her."
The rescue comes just over a year after two young Waihi boys saved a Chinese man from drowning at Waihi Beach.
Will White and Sergio Schuler, both 12, were awarded the RSA's Anzac of the Year Award by Governor General Sir Jerry Mateparae in February after rescuing the man who was caught in a rip in December 2012.
Mount Maunganui Lifeguard Service general manager Glenn Bradley said there were a number of young children getting involved with rescues along the coast.
"It just shows what a little bit of surf lifesaving training can do," Mr Bradley said.