Grayling is a city in the U.S. state of Michigan and the county seat of Crawford County. The population was 1,884 at the 2010 census.Grayling is surrounded by Grayling Township. It is located in the middle of Northern Michigan. The highways make it the natural 'gateway' to much of "up north," as it is known to locals and many visitors. Grayling is perhaps most famous for hosting the Au Sable River Canoe Marathon in July of every year since 1947.