In an interview for People in April 1982, shortly before her death, Grace described Caroline and Stéphanie as "warm, bright, amusing, intelligent and capable girls. They're very much in tune with their era. Besides being good students, they are good athletes – excellent skiers and swimmers. Both can cook and sew and play the piano and ride a horse. But, above all, my children are good sports, conscious of their position and considerate of others. They are sympathetic to the problems and concerns in the world today."
Princess Grace died on 14 September 1982, the day after suffering a stroke while driving her car, as she and Princess Stéphanie were returning home to Monaco from a visit to France; resulting in an accident in which both were injured.
Following her mother's death in 1982, Caroline served as de facto first lady of Monaco until her brother married Charlene Wittstock in 2011. She regularly attends important social events in Monaco related to the Monegasque Princely Family, such as the National Day celebrations, the annual Rose Ball, the Red Cross Ball and the Formula One competition Monaco Grand Prix. Due to her commitment to philanthropy and arts, Caroline was named a UNESCO Goodwill Ambassador on 2 December 2003. The UNICEF honoured her with Children's Champion Award on 20 May 2006. The next year, she travelled to the Republic of South Africa to meet its former president Nelson Mandela. In December 2011, the World Association of Children's Friends honoured her for "tireless endeavours in continuing the organisation's legacy". Her personal friend and the Chanel head designer Karl Lagerfeld presented her the award. Caroline had also previously been given the Grand Cross of the Order of St. Charles, and had been appointed as the Commander of the Order of Cultural Merit.