Usually means: Top award in a competition.
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We found 5 dictionaries that define the word grand prize:

General (3 matching dictionaries)
  1. grand prize: Merriam-Webster
  2. grand-prize: Wordnik
  3. grand prize: Wiktionary

Business (1 matching dictionary)
  1. Grand prize: Legal dictionary

Computing (1 matching dictionary)
  1. Grand prize: Encyclopedia

Definitions from Wiktionary (grand prize)

noun:  In a tournament, raffle or other contest, the most desirable prize, offered for the overall winner; first prize.

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