Grassy Lake is a hamlet in Alberta, Canada within the Municipal District of Taber. It is located on the Crowsnest Highway (Highway 3), midway between the cities of Lethbridge to the west and Medicine Hat to the east. It is approximately 13 km (8.1 mi) west of Burdett and 34 km (21 mi) east of Taber. It has an elevation of 810 metres (2,660 ft). It was formerly incorporated as a village, dissolving into the Municipal District of Taber on July 1, 1996. The hamlet is located in Census Division No. 2 and in the federal riding of Medicine Hat.