The clip features Grace, who only recently took her first steps, walking through Australia Zoo and stopping outside the Tasmanian devil habitat.
The display is temporarily closed and fenced off with a sign of Steve wearing a hard hat alongside the caption: “Crikey we’re under construction”
“We have a little construction going on to make our Tasmanian devil habitat @australiazoo even more beautiful,” Bindi wrote on Instagram.
“Grace’s favourite part? Visiting Grandpa Crocodile. All the love.”
In the video, Grace walks over to the poster of Steve as Bindi asks, “Is he over here?”.
“Yes,” she answers.
“Grandpa Crocodile, and he’s in his construction hat!” Bindi remarks. “Do you love Grandpa Crocodile?”
Grace then waves at the sign and once again says, “Yes”.
“I love you, sweetheart,” Bindi says at the end of the clip. “Grandpa Crocodile loves you too.”
'Brought tears to my eyes'
A number of Bindi’s followers took to the comments to praise Grace, including her dad Chandler Powell who wrote: “Her little wave gets me every time”
“The cutest,” Australia Zoo’s official account replied, followed by the Wildlife Warriors page which said, “So adorable!”
“This brought me so much joy!” one fan said, while another shared, “Oh wow, that brought tears to my eyes. So sweet”.
Meanwhile, plenty of people left comments about Grace’s sweet connection to Steve, who tragically died in 2006 when a stingray barb pierced his chest.
“Steve’s soul lives on through his granddaughter,” one person wrote, with another adding, “It’s like she knows him from another time”.
“I know not everyone would believe in this, but I 100% just know Grace knows exactly who that is at her young age,” a third remarked. “You can’t tell me Steve didn’t spend time with her in heaven before she came to Bindi’s womb.”
“They say loved ones who passed on meet the baby in heaven and pass them on to the world when they’re ready to be born. She probably got to meet him and that’s why she looks like she knows him,” a different user shared.
In May Bindi opened up to PEOPLE about how Grace is “fascinated” by Steve, who is affectionately referred to as “Grandpa Crocodile”.
“We have so many documentaries of Dad, and we're always playing them for Grace,” she shared. “It's so fun to watch her study him.”
“I didn't realise how much Dad's passion for life and his animated facial expressions — I mean, they captivate her.”
Never miss a thing. Sign up to Yahoo Lifestyle’s daily newsletter.
Or if you have a story idea, email us at firstname.lastname@example.org.