The That '70s Show and Spider-Man 3 star unveiled his new cut of the three movies at a private screening for filmmakers, actors and select online press, reports Slash Film.
Grace's movie, titled Star Wars: Episode III.5: The Editor Strikes Back, reportedly came about after the actor took an interest in the editing process and sought to assemble a project that had a lot of existing material to work from.
The new Star Wars film features footage from prequels The Phantom Menace, Attack of the Clones, Revenge of the Sith, snippets from the original trilogy, music from TV series The Clone Wars and dialogue of C-3PO (Anthony Daniels) taken from an audio book recording.
Grace even created his own opening text crawl to set up his story, which removes the prequel trilogy's political Trade Federation and clone stories to shift focus onto Anakin Skywalker's (Hayden Christensen) journey from Jedi to Sith and his relationships with Obi-Wan Kenobi (Ewan McGregor) and Queen Amidala (Natalie Portman).
Jake Lloyd is absent entirely from the new cut, as is the much-maligned 'midichlorians' sub-plot. Jar Jar Binks only appears briefly to deliver a line of dialogue that introduces Amidala.
It is unlikely that Grace will be able to screen The Editor Strikes Back in public, as his cut was made without the endorsement of Star Wars creator Lucas.
Star Wars fan Mike J Nicols released the unauthorised Episode I.I: The Phantom Edit in 2000, which re-structured Lucas's 1999 prequel into a leaner 115-minute film.
Grace is said to have ended his screening of The Editor Strikes Back with a trailer for his next remix offering, a fresh edit of Steven Spielberg's Close Encounters of the Third Kind.
Watch the trailer for the recent 3D re-release of Star Wars: Episode I - The Phantom Menace below: