In 1614, Mariano Bolizza wrote that Grahovo was situated in a beautiful plain, and commanded by Mile Perin. The settlement had 90 houses, out of which 70 were Orthodox Christian, and 20 were Turkish (Muslim). The town had 200 men in arms.[2]
Four years after the Montenegrin defeat at Grahovo, seeking revenge for the death of his brother, Njegoš plotted the assassination of Smail-aga with the assistance of the local Christians from Herzegovina who lived on the territory under Smail-aga's control. Njegoš ordered a Montenegrin tribal leader, Novica Cerović, to ambush Smail-aga Čengić, the Ottoman commander who was responsible for killing Njegoš's brother Joko.
In late September 1840, Montenegrins attracted Čengić and his army deep into their territory, organized an ambush and murdered them by attacking their camp during the night. The assault occurred in the village of Mljetičak, north of Nikšić. In the ensuing clash, Smail-aga was shot and killed, after which his severed head was brought to Cetinje. As a sign of his gratitude, Njegoš made Cerović a senator.
The town of Grahovo, although fairly small received many high positions in the Montenegrin Government, For example, Most Montenegrin Kings were titled as the "Grand Prince of Grahovo".
The title "Grand Duke of Grahovo", which refers to this settlement, is an honorary title held by the titular rulers of Montenegro, currently held by Boris, Hereditary Prince of Montenegro.
