The village takes its name from Grasmere, itself one of the lakes.
Grasmere is best known as the home of the 19th century poet William Wordsworth and his sister Dorothy. Their home, Dove Cottage, is now open to the public as a Wordsworth Museum.
St. Oswald's Church is mediaeval, but a church has stood on this site since the Anglo-Saxon period. In the churchyard are the Wordsworth graves.
Beside the church a Wordsworth daffodil garden has been created.
Nearby, a shop situated in an old cottage does a roaring trade in gingerbread.