- the video for "Trebam nekoga" (directed by Vinko Bresan) is released.

- victory passes by Petar marginally yet again on "Dora 1997 - Croatian song for Eurovision". He won 2nd place with "Idi" ("Go").

- a new Croatian animated movie "Cudnovate zgode segrta Hlapica" (in Europe known as "Lapitch, the little shoemaker" or "Lapitch der kleine Schuhmacher") comes out. Petar's song "Ljubav pozlati sve" ("Love shines over everything") could be heard at the end of this movie. The video for this same song, which was directed by Zeljko Zima, came out at the same time.
- Petar works in Opatija on the video for the song "Idi" (video was directed by Katja Restovic).

- with the famous croatian basketball player Dino Radja, Petar records the duet "Nisan vise ja sa njon" ("I'm not with her anymore").

- Petar takes part in "Festivalbar '97" in Pula where the likes of Gary Barlow, ex-Take That singer also performed. Just like Barlow, Graso bought the house down with his performance.

- at the music festival "Melodije hrvatskog Jadrana Split '97", Petar performed the song "Ne boli me" ("It doesn't hurt me") and became the overall winner of the festival. He won a Zlatni Galeb (Golden Seagull) as prize for this 1st place on the 1st evening of the festival, and then the Grand Prix on the 3rd and final evening.

- on the 18th August, Petar's debut album "Mjesec iznad oblaka" ("Moon above the clouds") is finally released. It sold an astounding 13,500 copies in the first week, 35,000 copies in the first month, and one year after its release, more than 80,000 copies!

- Petar received a Gold record and Silver record in recognition of the high sales of his debut album "Mjesec iznad oblaka" at hotel Esplanade in Zagreb.

- the video for the song "Volim i postojim" ("I love and I exist") comes out (video was directed by Zoran Pezo).

- at "ZadarFest '97", Danijela performs Graso's song "Sto sam ja, sto si ti" ("What am I, what are you") and on the first and final
evenings of this festival wins 3rd place (public votes). During intermission, Petar performed with Doris Dragovic their duet "Sto je od mene ostalo" ("What has remaind of me").

- on 30th October, Petar appeared at his first big concert in Split called "Petar Graso and guests", which was held at the Gripe sports centre. All tickets were sold within hours of being released. His guests included popular Croatian singers Danijela, Doris Dragovic, Oliver Dragojevic as well as actors from the popular TV series "Evening school" Denis and Aljosa. The same concert was held in Zagreb at concert hall Vatroslav Lisinski from the 12th to 14th of November.