The 14-time major champion announced on Friday that he will miss both the Genesis Open and the Honda Classic as a result of the back spasms that forced him to withdraw from the recent Dubai Desert Classic and was unclear on when he will return.
Woods has been plagued by injury issues in recent years and it appears increasingly unlikely that he will ever get back to the type of form that saw him dominate the sport.
Grace admits he has found it tough watching one of his heroes struggle so much and feels the sport is not the same when the 41-year-old is not in the spotlight.
"It's a tough situation, for me growing up Tiger was one of my idols," Grace told Sport24. "He is still one of the best who has ever played the game, I think golf is in a good space at the moment, but golf still needs Tiger.
"If he can come back and make a strong comeback it would be great, maybe if he doesn't even win a major but just gets back in the winner's circle then I think it would be really, really good for golf.
"I don't think there is any doubt that's what he wants, but I think we all need him and I would thoroughly enjoy seeing him back in the winner's circle."